In this paper the dynamics of entrepreneurship are discussed with respect to the changing role of local authorities and relationship between public and private sectors. The discussion begins with a review of literature to establish a theoretical argument in both international and local contexts. Following this, a background to the research process is given. The paper draws on a number of independent research projects of which the common feature, when viewed collectively, is the role of local government in the development of tourism. The first part of the discussion gives a necessary overview of the traditional role of regional tourism organizations with respect to place marketing functions and their relationship with the events sector. Following this, the discussion contrasts the case studies of Rotorua and Wellington to illustrate the capacity of different entrepreneurial styles to influence socio-economic environment in markedly different ways. The paper concludes for tourism development in the public sector. Whilst the macro policy environment has clearly defined its responsibilities, the classical dialectic of the public-private, economy-society relationship is left to materialize at the regional and local level in what appears as an often confused and complex reordering of values and roles.