This thesis discusses and suggests a role for municipal government in the economic development of Newfoundland and Labrador. Increasingly, the globalisation of economic systems is changing the environment in which nation-states exist and operate. The forms and uses of power by nations of affect economic activity are changing. As the economic workings of world trade become increasingly outside of the influence of these nation-state governments and their agencies, people look to the more immediate, indeed the more accessible level of political organisation to provide some direction.The Province of Newfoundland has put into place a system of Regional Economic Development Boards (REDBs) to develop strategic plans to direct future development initiatives. Concurrently, the Province is developing a system of regional municipal government with the related reform of a mandate for all municipalities, including regional, to undertake community economic development. The relationship between the REDBs and regional government is the platform upon which the thesis is constructed.It is argued that global economic influences have led to opportunities for specialised, regional production systems to compete successfully. In such an environment local government can make use of its links to the community and available tools to encourage such economic development. A relationship between REDBs and regional government in Newfoundland is modelled as an effective partnership for encouraging successful regional economic development. This relationship is based on the complimentary strengths of the two entities in generating local input, developing strategic plans, and implementing initiatives. It calls for a form of regional government that is a forum for local discussion of regional issues. Such a regional government will have the political maturity and capacity to become the policy-making focus for regional economic development in the province.