MURP / Department of Urban and Regional Planning / University towns or town gown relationships are increasingly becoming an accepted developmental narrative between institutions of higher learning and their host communities. The University of Venda was mandated by the Honourable Minister of Higher Education and Training Dr. Blade Nzimande, in October 2014, to devise a university town strategy aimed at developing Thohoyandou and its rural environs to become a university town. The University of Venda in its approach towards the development of a university town has adopted the new governance approach of formulating innovative collaborative partnerships with its surrounding stakeholders that include Limpopo Premier’s Office, Vhembe District Municipality, Thulamela Local Municipality, VBS Mutual Bank, Madzivhandila Agricultural College and Traditional leaders. The study approach adopted quantitative research method. Its centre piece was the Optimal College Town Assessment (OCTA) a quantitative tool which was utilized to gather data from the representatives of the university and Thohoyandou town stakeholders. To test the town and gown developmental paradigm, this study explored student housing development possibilities as a manifestation of university-community partnerships. The study findings highlight that existing town-gown relationships between the University of Venda and its stakeholders are categorized as traditional relationship type which is characterized by low effort and higher comfort level. Institutional context roles that the University of Venda should play in the successful development of town-gown partnerships were also established. The study identified the factors essential for the development of viable and functional innovative collaborative university-stakeholder’s partnerships for the University of Venda and the town of Thohoyandou and its stakeholders. The study findings also show that there is potential for student housing development when there are positive town-gown relationships. This is in line with the calls from South Africa’s Ministry of Higher Education and Training expectations to resolve student housing backlogs facing public universities. This study recommends the improvement of town-gown relationships and it provides a conceptual model indicating the building blocks that the university should adopt to develop successful, innovative, viable and functional town-gown partnerships.