Mt. Merapi is one of the most active volcanoes in the world and located at 30 km north-northeast from Yogyakarta, Indonesia. A large amount of sediment supply from Mt. Merapi area is serious threat to people, but works also as an important resources for people. Thus, the sediment from the volcano has given some advantages and disadvantages. Sustainable sediment management is urgently necessary to mitigate the sediment disasters and provide the people with benefits. It is considered that sand mining activity can be used as one of the tools to control the sediment discharge, and the regional development. In this paper we discussed the basic concept of such sustainable sediment management considering the sediment production, the topographical and hydrological condition, and the actual sand mining activity.