Abstract:The role of tourism in rural areas is pivotal for the integration and valorization of territorial resources and it is strengthened by the capacity to promote local community participation in processes of development. The paper addresses the issue by presenting and discussing a case study of a rural area of southern Italy where a territorial network for the development of local tourism has been set up. The innovative initiative aimed, firstly, to facilitate a closer connection between production and consumption by reducing transaction costs and, secondly, to connect local production with quality conscious consumers looking for traditional products. The network project also aimed to create conditions conducive to increasing the competitiveness of the local production chain and tourism sector. The case study shows how the challenge for many rural territories lies in increasing levels of trust and rebuilding social capital as a precondition of developing the tourism sector and fostering socio-economic development as a whole. Traditional institutions, as well as hybrid institutions, with the support of research organizations, can play a key role.