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Community capacity is important for the success of a community. This work examines the basic strategies for building community capacity, including leadership development, organizational development, community organizing, and inter-organizational collaboration. It will then address the question of how a local policy structure can be analyzed for community capacity-building potential. The municipal-level policy structure of Pagudpud, the Philippines is examined to reveal its community capacity-building components. The basics of the Pagudpud policy structure are identified here as an example of how community capacity-building strategies can be conceptualized as policy. After an initial introduction of Pagudpud and its policy structure, an assessment of the municipality's community capacity is discussed. Pagudpud's policy structure is then examined in terms of the effectiveness of its community capacity-building strategies.