Disasters create enormous pressure to provide survivors with permanent housing and normally lead to large-scale reconstruction programmes. In this respect, the concept of sustainable reconstruction has surfaced in the international arena as a successful strategy to deal with disasters, since it addresses the issue of sustainability during the recovery process. This paper focuses on Nias, an Indonesian island hit by the December 2004 tsunami and the March 2005 earthquake, and shows why and to what extent governance is key to achieving sustainable reconstruction. In analyzing these issues, the article uses evidence from field research and relies on primary data collected through questionnaires, semi-structured elite interviews and in-depth interviews. Finally, the paper draws conclusions regarding some major governance gaps that might have prevented the reconstruction process in Nias from being sustainable.