One of the building blocks of effective loss reduction is the regulatory environment: the laws, rules, and regulations put into place by government entities and civilian organizations to control the behaviour and actions of business activities. These include laws, rules and regulations relating to the way in which fish is caught, farmed, handled, processed, prepared, and labelled, and includes health and safety for employees working in the food sector. In order to comply with legislation, fishers, processors and traders will, by necessity, have to implement practices that will maintain quality and safety and hence reduce food loss and waste (FLW). Legislation can be translated into local bylaws, which can be used to govern the way in which infrastructure, such as fish landing sites, are managed and maintained, or the way in which fish are handled and processed at community level.

One of the biggest challenges regarding legislation, however, is its effective implementation. Whilst sound and modern legislation may be in place on paper, poor enforcement and implementation will reduce its effectiveness.