The "Kerala model of development" has won wide international attention for its achievements in regard to social development and, to a certain extent, environmental sustainability. The "old" Kerala model, preoccupied with redistributive policies, failed, however, to induce economic development. As a result, attention is now being given to a "new" Kerala model. The new policy explicitly seeks reconciliation of social, productive and environmental objectives at the local level, and tries to develop synergies between civil society, local governmental bodies and the state government. The new Kerala model thus holds important lessons for participatory, community-based sustainable development in India and elsewhere.