Using South Africa as a case study for the workings of community agency in partnerships with the public and non-profit sector, this paper focuses on community-driven developments in townships in the Western Cape. The hypothesis is put forward that although structural factors are a major influence on the success of community agency, a formal approach to project management offers a powerful tool for mitigating their impact. The paper addresses the strengths of formal project structure in the development process, and considers its limitations. Five development projects in townships in the Western Cape are examined for preliminary evidence on this hypothesis and broader implications for the nature of participative democratic process are discussed.