Local sustainable development emphasizes the role of a community. One of the key prerequisite of this process is therefore participation of inhabitants. Nevertheless traditional way of managing cities does not work very well in terms of public engagement. Local sustainable development requires both i.e. governance mechanisms introduced by the local authorities and positive reaction of inhabitants for the invitation for cooperation. The paper is intended to explore some critical issues and dimensions of governance and citizens' engagement in terms of local sustainable development. It shows the general outlook on the most relevant conditions, factors, problems and barriers of this process in Poland. It presents experiences of the city of Rybnik in its work towards public engagement in local development.