The authors argue that the solution of urban problems requires resources and powers far beyond those available to most local governments. Only through partnerships of all relevant actors—public officials, businessmen and neighborhood residents—can such issues be dealt with.Yet, partnerships are neither simple nor inevitable. They require hard work and usually the development of the capacities of all involved. Such capacity building for partnerships is on three levels: the development of the individual capacity to play partnership roles; the creation of interactive partnerships operating as local problem solvers; and the fostering of inter‐partnership networks.Neighborhoods are seen as the building blocks of cities, serving as a locality of scale upon which the citizen can base his concerns and actions and within which partnerships can operate effectively. Specific recommendations are made, utilizing this policy context to build capacity for partnerships at the neighborhood level, particularly with regard to the Intergovernmental Personne