Information system research that recognises, supports and enables access of diverse knowledge communities on-line has become a major concern. Of particular concern is how these digital resources can support and preserve local identities and promote grassroots involvement in creating the infrastructure of devolved governance. The aim of this paper is to expose some of the conceptual obstacles to programmes of devolved and local knowledge resources, and to provide an account of agency that recognises that on-line communities, and community identity, is essential for eliciting, managing and sharing local knowledges. Further, this paper will demonstrate how the implications of these issues impact institutions for managing knowledge that may be extended to all sorts of knowledge communities.