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In this globalisation era, small towns around South Africa (as well as in many developing countries) are experiencing declining economies hence regeneration strategies are essential. Small towns are significant economies in institutional efforts (particularly by government) to close economic gaps. The focus of this paper is on regeneration strategies for small town economies in South Africa using the case study of Mooi River in the Mooi-Mpofana municipality. Hence the main research question is what scope is there for effective local action to improve economic circumstances in small towns outside major urban core areas? Based on the case study to achieve the desired growth prospects for the local municipality there are three areas of intervention that needs significant attention: 1) promoting public-private partnerships in the localities, 2) extensively engaging in enterprise development services; 3) investigating development strategies to enhance the capabilities of localities. Government policies and programmes must prioritize these key aspect in pursuit of better livelihood strategies particularly for the many poor people in the country.