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“We focus in this article on the challenges local governmental (municipal) and third-sector (nonprofit) organizations face when they seek to work collaboratively or in partnership. We build on the findings of an action research project to draw out the practical implications of cross-sector working for the organizations involved. We describe jointly agreed suggestions for tackling the challenges that emerged when third-sector organizations and local governmental agencies themselves worked collaboratively in a search for mutually acceptable solutions. Finally, we draw out learning points on cross-sector working for practitioners, policymakers, and researchers.”