Over the past decade governance reform in Australia has assumed increasing prominence as a key instrument of public policy in Indigenous affairs, environment and land management and resource development discourse to address issues of socioeconomic disadvantage, political marginalisation and environmental challenges.

The focus on Indigenous governance has overwhelmingly been on corporate governance and the capacity of community-based organisations to provide services, much of which are outsourced by governments. However, four years of research evidence from the Indigenous Community Governance Project (led by the Centre for Aboriginal Economic Policy Research and Reconciliation Australia) stresses that governance is much more than simply service-delivery - it is about having genuine authority and power, practical capacity, legitimate institutions and resources at the local and regional levels. From that 'governance baseline', people can and do make informed decisions and policies for effective service delivery, and community and economic development.

An ICG Project case study in Western Arnhem Land provides a particularly illuminating story of how a regional governance model has been developed over 5 years that is based on building a governance baseline and recognising the cultural networks and links between local, community and regional - through to state and national.

In the case of West Arnhem, the local government Shire covers an area of 50,000 sq kms; includes 4 major Indigenous communities on Aboriginal freehold land, a non-Indigenous town with major resource development, a World Heritage national park; over 80 outstations; and a mix of Indigenous and non-Indigenous residents.

The paper describes how a workable and legitimate governance model was negotiated in this complex environment, and draws out compelling implications for the governance of other remote regions in Australia.