This study explores knowledge management in community-based urban development, focusing on a case study of kampung bendhung lepen, mrican. The main argument of this study is that structured and initiated local knowledge can effectively increase the capacity of communities to adapt and thrive in an ever-changing urban environment. This study aims to identify how local knowledge is initiated, how inclusivity and community awareness are strengthened, and how communities interact with external resources to support urban development. This study adopts a qualitative approach of case studies, then data collection is carried out through interactive interviews, and document analysis is carried out by examining various sources such as news articles, social media, and YouTube videos. The data analysis process is carried out by the manual coding process where coding is carried out to find keywords from the transcription that has been obtained. Triangulation is carried out to validate the data. The results of the research are divided into three main themes. The first theme is the initiation of local knowledge, the second theme is inclusivity and community awareness. The third theme is intervention and external acquisition experiments. The conclusion of this study emphasizes the importance of integrating local knowledge in community-based urban development strategies. The suggestions put forward are the need for policies that support community initiatives and recognize local knowledge as a valuable asset. This model can be applied to other urban communities to achieve sustainable and inclusive development.