Tourism has become a popular way of boosting the economies within rural areas but it may also be accompanied by a variety of far-reaching impacts which affect several (non-economic) aspects of residents quality of life. Local involvement is considered to be a key ingredient for rural community development and it is also recommended for achieving a successful form of tourism that provides communities with a degree of control over tourisms benefits and outcomes. The case of Dawson City, Yukon shows that community members have become involved in creating tourism events and attractions, developing local facilities, and delivering a range of valuable programs and services by participating in the third sectors activities, organizations and groups. This study argues that Dawsons success is linked to the existence of a strong third sector, which has not only acted as a vehicle for tourism development but has also been essential for enhancing the communitys quality of life.