This paper investigates the impact of caste-based political reservations in leadership of local governance on economic and environmental outcomes, focusing on Karnataka, India. A 1992 legislation introduced electoral quotas(reservations) in village councils to ensure political representation for marginalized groups, specifically Scheduled Castes (SC) and Scheduled Tribes (ST). Leveraging quasi-random variation in seat allocation for the council chairperson position across multiple election terms, we analyze a comprehensive dataset of over 5,000 councils for 5 elections between 1994-2010 to assess how SC and ST leadership affects two critical metrics: forest cover, as a measure of environmental stewardship, and night-time lights, as a proxy for economic activity. Our difference-in-differences approach indicates that SC-ST leadership is associated with increased local development but also reveals reductions in forest cover, with divergent effects between SC and ST leaders. These findings suggest a complex interaction between representation, development, and environmental sustainability, highlighting the need for policies that empower marginalized leaders with resources to balance development goals and conservation efforts.