This paper attempts to summarize the findings of a study, which explored the levels of community capacity building (CCB) that contributed to tourism development in local communities. The study was carried out in Shiraz, Iran. The study focused on the level of community capacity building in local communities that involved in tourism activities. The research methodology of the study was based on qualitative and quantitative methods. Findings of the study show that the level of CCB in tourism development in the study area is generally low. Secondly, the CCB in the Old District of Shiraz was higher compared to the New District. The result also shows that the level of CCB is different according to types of tourism activities. The objective of the study also was to determine the relationship between the level of CCB and community leaders' perception of tourism impacts and their characteristics. The results from the multiple regression indicated that CCB can be predicted by community leaders' income, tourism income, extra activities, length of residence, educational level, and number of family members engaged in tourism activities.