Almost all economic activity in advanced nations takes place in cities, and governments around the world are increasingly taking action to restructure and reposition their cities to take advantage of the twin pressures of globalisation and knowledge-based economic growth. This study examines a unique experiment in Western Sydney where a government agency stimulated urban economic development using an approach based on entrepreneurialism: where government agencies, industry and communities in urban regions worked together to coordinate the economic development of their region, and increase investment, innovation and competition. As well as delivering practical benefits to firms, this approach initiated networks of economic governance to support the economic growth of the region’s advanced manufacturing, information technology, biotechnology, environmental technology and cultural industries. The paper concludes the Office of Western Sydney’s approach to urban economic growth and governance is a powerful urban economic strategy, but can only succeed in the long term if there are complementary changes in State and national level mechanisms of economic governance.