The digital revolution at the end of 20th century has opened some new doors for the communities to take active part in the creation of global knowledge. Telecommunication technologies have transformed how work/knowledge is produced and from where it is being done/distributed. This has led a number of scholars to advocate the concept of knowledge-based developments (digital neighbourhoods, wired communities, knowledge-based neighbourhoods etc.) to be the best localities that attract information workers, emphasise on the productive side of residential communities and finally boost the regional prosperities. This paper presents a review on the birth of knowledge-based neighbourhoods and sheds light on some of their promises in the literature. It then investigates the preliminary finding of an empirical study in a knowledge-based development in Queensland, and notes the third wave of local economic development supporting the growth of specified industrial clusters of related firms. The paper concludes that knowledge-based regional development will not happen unless a network of knowledge-based communities get established and work together.