Rural economic development as a lergest part of agricultural development could be developed as an autonomous unit of government in rural area. Rural development could be done by self-supporting through the strenghthening of local organization function with a set of norms and supported by available resources. Data used in this paper was the result of the research related to the strengthening of local institutions that was carried out in the Martaya Village, West Sulawesi Province, Indonesia. Research results showed that development of irrigation infrastructure, farmer group, and rice mill business could be done based on farmers' needs. Farmer group members were dominated by Bali as self-support transmigration. The development of farmer group encouraged village roads and village regulations that supported the government of autonomous village. The community development activities could be done by local organization and supporting the village development planning and sustainable agricultural development. Local organizations could be functioned in the activities of joint discussion meeting (Musrenbang) at the village level which was one of the stages in the system of national development planning.