In the literature on community economic development an absence of theoretical development is acknowledged, but not pursued. This paper strives to fill this void. Because the focus is process, rather than structure, the theoretical basis can only be found in postmodern cultural theory. This study uses postmodern theory to develop a political economy that is based on community economic development and Canadian intellectual thought.This is a search in the Canadian tradition of seeking middle ground, of attempting to balance the rights of the individual with those of the group, and resolve the tension between Canadian nationalism and regional expression. This is also a discussion of values which could provide a foundation for building structures conducive to achieving the social and economic goals of community economic development.