Uneven economic growth across regions is a continuing feature of Canadian Society. Locally initiated development efforts are increasingly being examined in political and academic circles as an appropriate strategy to address issues of community marginalization. In this respect, community development corporations (CDCs) are viewed as democratic community-based organizations that provide residents with the means to plan and implement development strategies that address community needs.CDCs are expected to integrate principles of democratic community control with private sector economic activity. This thesis explores the extent to which the Great Northern Peninsula Development Corporation, a CDC located in Newfoundland, and New Dawn Limited, a CDC located in Sydney Nova Scotia, were able to manage the tension between operating in a market economy and following principles of community control.Interviews with the boards of directors of the CDCs and leaders of relevant community-based organizations indicated that both CDCs adopted the style and strategies of market-oriented private sector firms. Few opportunities were given to community residents to participate effectively in the planning and implementation of development policies. Almost all of the limited resources were focused on establishing and managing business enterprises. Leaders of neither organization saw community economic development in terms of an alternative development strategy with community empowerment as the goal.