Effective management of biodiversity resources in nature reserves requires accurate and up-to-date information to determine the type of land cover and land use over time. This study employed Landsat TM and ETM+ data to develop a database for Digya National Park in Ghana which will assist in the management and formulation of policies and offer decision-making tasks related to park management. The study revealed that the most significant cause of deforestation in Digya National Park is the expanding Lake Volta, which accounted for two-thirds of all deforestation factors. Other factors included human settlement and the extension of illegal farming activities. The paper concludes by outlining policy recommendations such as the need for the Wildlife Department to coordinate its protection efforts with Departments of the Government of Ghana which have authority over the Volta Dam and also to involve the community in the decision making process both at the local and national level.