Coasts and river basins contain important natural environments but they are also used intensively by mankind. Both systems support a variety of socio-economic functions as they provide space, produce resources and absorb unwanted products. Economic activities in downstream areas benefit from upland resources, such as water, aggregates and wood. On the other hand, coastal areas provide space for settlement and industrial or tourist developments that have a positive benefit for the wider basin area. The two areas are linked through a number of natural and socio-economic processes: the cycle of water, sediment transport and human activities. Integrated Coastal Area and River Basin Management (ICARM) provides the opportunity to consider explicitly certain aspects of these systems that have previously been seen as outside the scope of interest. Such an approach leads to better co-ordination of policy making and action across sectors (water, forestry, agriculture, urban development, environmental protection, etc.) and geographically, ultimately leading to a more rational use of resources and more effective environmental protection. The paper also presents some guidelines how the process of ICARM could be practically implemented in a variety of contexts. UNEP, MAP and PAP have jointly developed an approach to ICAR; The guidelines have been prepared and tested in a pilot project in Cetina river basin in Croatia and Bosnia and Herzegovina. A socio-economic and environmental profile of the coastal area and river basin was prepared, a study of development impacts is in preparation, while the environmental management plan could be prepared in the future if the adequate funding will be found. However, the partners are ready to offer their full support to ICARM endeavours in the region.