A Living Lab is a new way to deal with community-driven innovation in real-life contexts. The Living Lab concept is fuelled by knowledge sharing, collaboration and experimenting in open real environments. This research explores the sustainable development of community Living Labs within a South African context. The members of rural communities need sustainable development support in order to create jobs and alleviate poverty. In order to do so they need an open multidisciplinary research and systems thinking support environment which is facilitated in the Living Lab environment. The Living Lab approach provides its user group with an opportunity to develop a much deeper understanding of how the various components in their functional environment operate and interrelate. In the research community the Living Lab concept seems to be gaining increasing acceptance as a way to deal with innovation and to get insight into the innovation process. Several Living Labs are currently connected in a network of Living Labs, both in Europe and in South Africa aiming to share best practices and lessons learned. Creating an innovative software based management model for Living Labs for the greater South African region is also part of the research objectives. This paper presents two interrelated frameworks for the establishment of a Living Lab within a South African context. The paper also highlights the important role of holistic Systems thinking in a Living Lab environment.