In 2001, a scheme called Citizen Community Board (CCB), a kind of communitybased organisation (CBO), was introduced in Pakistan, under which local people propose development projects to the local government through forming a CCB, and upon approval the local government funds 80 percent of the project cost. Since 2001, however, both the number of CCBs and that of approved projects have been below the expected level. This raises a concern that the Pakistani society with limited historical experience in CBO-based development is too handicapped for the CCB scheme to be successful. This paper addresses this concern through quantifying the determinants of successful formation of a CCB and those of successful development activities conditional on the formation. The regression results using a cross-section dataset in a district in Pakistan Punjab in 2004-05 suggest that the rules within a CCB and the type of leadership are key to the success of CCB initiatives.