The Sabah Forestry Development Authority (SAFODA) was established when Enactment No. 20 of 1976 was passed by the Sabah Legislative Assembly on 24th December, 1976. The effective date of the Enactment was 1st January, 1977.

Enactment No. 20 of 1976 was replaced by Enactment No. 24 of 1981 to make better provisions with respect to the constitution, administrative procedure, functions and finance of SAFODA.