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Participatory impact assessment is a term frequently used and often abused. It refers to an approach that includes interested and affected parties in deciding indicators and measures of environmental and social impacts, in evaluation of effects and monitoring. Involving communities in a participatory manner facilitates skill transfer, fosters buy-in and creates local social capital. This paper describes a participatory exercise initiated by a local authority (Council) in New Zealand. Based on the reported assessment and that of two others, five essential ingredients are identified for a genuine participatory exercise. Time and flexibility are key components. [ABSTRACT FROM AUTHOR]