The development of major sport events in rural areas offers opportunities for local communities to engage in leisure, sport and tourism activity. While current studies investigate the impact of sport events on residents individually, little research has taken a community perspective. The purpose of this research was to explore the process of event development and the impact upon social interactions in seven rural communities in the 2012 Tour Down Under cycling race in Australia. Using grounded theory to explore community activities, interviews and focus groups with over 100 participants resulted in the development of a core category of collaboration; and five subcategories to examine the role of the event in stimulating community interaction and social capital. A model of sport event development explains the impact of the event development process on community relations in this rural context. Implications are discussed for managing the relationships between communities and event management organisations.