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Mass urbanisation in cities of the global South, is causing cities to evolve, with informal settlements being central to this evolution. While local government is the official point of interaction for urban informal settlement dwellers, those interactions are often characterised by a lack of meaningful participation. Engaging with the co-production literature and two case studies of informal settlements in Cape Town, South Africa, this paper examines how they shed light on the shifting and constantly evolving roles and practices of local government and community actors within a co-production engagement. Based on the findings from these cases, the paper argues that co-production as a practice of collaboration between the local state and citizens can allow for the forging of new relationships, built on trust, sharing of resources and a more equal distribution of power where communities can shape the outcomes of service delivery projects to respond to their needs and demands. [ABSTRACT FROM AUTHOR]