A thesis submitted in the faculty of Arts at the University of Zululand, 2008. / The major constitutional drive of municipalities in South Africa is the responsibility to promote an improved quality of life of residents. Municipal areas, however, have different capacities, resources and development potentials. The ability to enjoy basic needs and better livelihoods is dependent on how the local economy is functioning and how the existing resources in the area are used to full potential. This study uses Ulundi as a point of reference to provide relevant and meaningful alternatives to problems of development faced by some of the municipal areas in the country and beyond. The study is a situational and land-use analysis of local economic development of the Ulundi Local Municipality (ULM). In the context of the South African space economy, Zululand's two well established towns, Vryheid and Ulundi may be regarded as major country towns, below the level of neighbouring coastal centres such as Richards Bay/Empangeni. Currently, the economic base of Ulundi is a dwindling regional government with little commerce and some informal trading. The theoretical framework of the study is based on theories of local economic development (LED) that are established within the framework of communal participation in integrated development plan (IDP). The aim of the study is to determine the landscape and cultural attributes and their developmental relevance to the economy of Ulundi. The research design involved data collection from the development planning section of the Ulundi Local Municipality, Zululand District Municipality, development planning unit of the department of local government, the political leadership of the municipality and a randomly selected 276 households in the area. The 5 established sections, that is. A, B north, B south, C and D are spatial units by which the data collected are aggregated. As part of the analysis of data, the research design incorporates statistical frequencies, cross tabulation and analysis of associations among attributes using Pearson's chi square tests. The tourism potentials of the environmental features have not been utilised to the fullest. This study proposes and advocates an environment-based strategic option and it justifies this strategic path for purposes of adding value to the Ulundi municipal area with a view to building a sustainable competitive advantage. The proposed conceptual model dwells on the possibility of launching new products and moving into new markets. The Ulundi Local Municipality in collaboration with ZDM and the relevant stakeholders develops and exploits its First World economic assets of tourism, that is, landscape and cultural assets to the fullest within the carrying capacity of its natural resources base.