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Italy is famous worldwide for its co-operative sector, and this firm model has proven to be efficacious in redressing many social inequalities over the past two centuries. This paper aims to examine how local communities in diverse regions have adapted this traditional form to the contemporary trend of bottom-up community development processes. Furthermore, the paper compares the Italian initiatives with the international literature on community co-operatives and assesses to which extend similarities and differences are viewable. The qualitative analysis considers 7 co-operatives in various areas of Italy, and analyses result from 15 semi-structured interviews with managers. Findings show the intense work undertaken before the co-operatives' registration, the negotiation of purposes and objectives with external partners, how founder groups have a key role in determining each firm's approach to local development, and how further networks with external subjects are deeply influence the co-operatives' work. [ABSTRACT FROM AUTHOR]