This chapter proposes an approach to knowledge development, using examples from indigenous and non-indigenous communities. It provides a simple framework for the development of local and traditional knowledge, based mainly on indigenous experience. The chapter discusses four cases from the islands of the Eastern Caribbean to illustrate the framework, which shows how new knowledge arises. It analyses the argument that the distinction between local and traditional knowledge is mainly related to the time dimension. Sufficient evolutionary time is needed for local knowledge to become time-tested traditional knowledge. The chapter also discusses the relationship between knowledge/practice and the development of institutions that provide resource rights and the security on local management. It evaluates about levels of analysis of traditional knowledge, making the point that management requires institutions to put into effect empirical knowledge and practice. The chapter summarizes the three areas of local and traditional knowledge: models of knowledge development, elements of knowledge systems, and mechanisms of development of knowledge.