Community Economic Development (CED) is a strategy to revitalise a community's economic, social and cultural dimensions. It is meant to help ailing communities heal and grow through a process of community-directed analysis, planning and project implementation. Because CED is a non-market response to social and economic problems, it necessarily depends on financial and institutional support from the government. CED's success hinges on the amount and type of support received from the three levels of government. It is important, therefore to undertake a detailed analysis of government policy towards CED in order to determine if it is properly formed and directed. The literature review at the beginning of the thesis provides a theoretical background for CED, including a working definition, the political economy of CED and some ideas on the economic theory of CED. The literature review is followed by an examination of 40 years of government policy towards CED. The government has been involved in CED in Manitoba for the past 50 years. The considerable archival material that documents this relationship is examined. This analysis will trace the evolution of government policy up to the present. Both successful and not-so-successful programs will be analysed. The results of semi-structured interviews with a variety of key informants will reveal how government policy has significantly impacted CED and will offer recommendations for its improvement.