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Building on an international literature that stresses the growing importance of cities in both the economy and governance, this paper proceeds from the premise that national government support is essential to the maintenance of a social safety net, but that a great deal of local initiative is also necessary in order to ensure that national government funds are spent in a manner appropriate to the very different conditions in different cities. The paper focuses on a case in which a municipal government initiated a tri-level government program. Winnipeg officials and politicians developed a proposal for federal and provincial participation in a locally created welfare-to-work scheme, a scheme that, unlike conventional workfare, offered union wages and training leading to well-paid work. The municipal government provided on-the-job training for workers selected from the welfare rolls to carry out infrastructure upgrades and financed the project with money the federal and provincial governments saved on welfare payments. The paper argues that the municipal government was uniquely well placed to identify needed work, as well as to choose welfare recipients who would be able to benefit from the job training on offer. In this case, therefore, we argue that local initiative was essential to the success of this federally and provincially financed welfare-to-work program. The findings of the theoretical literature we review suggest that it could eventually become a precedent for further municipal and local activism along similar lines. [ABSTRACT FROM AUTHOR]