\n\t\t\t\t\tAustralia needs to create innovative regions to sustain economic prosperity and regional development. In order to do this, regions will need to systematically address their knowledge needs and identify tools that are appropriate in maximising their effectiveness. Many initiatives have focused on information and communication technology (ICT) to enable knowledge exchange and stimulate knowledge generation, but active knowledge management (KM) strategies are required if ICTs are to be used effectively. These strategies must respond to the regional economic and social environments which incorporate small and medium enterprises (SMEs). This paper outlines the importance of KM for supporting regional cluster development and the key ways in which communities of practice (CoPs), a KM technique, have been used to add value in similar contexts. How CoPs and their online counterpart, virtual communities of practice (VCoPs), can be used and developed in regional areas of Australia is considered along with a program for further research. \n\t\t\t\t
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