Community Economic Development (CED) is a planning and development approach designed to build alternatives to the current system of economy which are shaped by local conditions and provide increased democratic community control over broader economic and social processes. This thesis is concerned with the capacity of CED to support difference and diversity in communities. This capacity is explored in a literature review which focuses on understandings of community, the individual and empowerment, on relations with funding bodies (particularly the state), and the professionalization and organizational development of CED. Problems with CED theory and practice found in the literature review are further explored with a set interviews conducted with CED practitioners. These interviews confirm a number of findings from the literature review, and demonstrate that while CED theory offers inadequate support for diversity, difference is an issue which cannot be ignored in practice.