Throughout the 1990s, Europe's rural areas increasingly embraced local action and local development solutions to face the challenge of the continued re-structuring of the agricultural industry. In parallel, in both the EU and the UK, a policy discourse has emerged which envisages a fundamental shift in support policies for rural areas from a sectoral approach (essentially agriculture) to one that is territorial. At the vanguard of these developments has been the EC's LEADER Programme. From a low base of entrepreneurial activity in rural Northern Ireland, LEADER area-based local action groups have acted as beacons for developing new approaches to diversifying the rural economy--in particular stimulating a significant reappraisal of the rural resource base. This paper charts the operational terrain of LEADER local action groups in the Province, suggesting that their strengths have been in developing the institutional capacity of rural communities and brokering connections in the local economy. Examples will be considered which illustrate enhanced coordination and collaboration of local economic actors and sectoral interests, and a strong facilitator role for LEADER groups in the local arena, with an explicit rural focus. The paper argues that this multi-level collaborative activity is rooted in partnership governance, enabling a communicative process among local stakeholders.