Chou, MarkBusbridge, Rachel2026-06-192026-06-192653-7281ORCID:/0000-0001-5142-2172/work/217923123https://hdl.handle.net/1885/733811687This case study examines how Australian local governments use community engagement strategies to build a Social Licence to Operate (SLO) when navigating contentious policy reforms, focusing on the polarised debate over January 26 (Australia Day) celebrations. While local councils lack constitutional recognition, many have stepped into this contested space, employing proxy methods such as community consultations, formal partnerships, advisory groups, and public communications to foster legitimacy and public trust. The analysis highlights significant variation in council approaches, shaped by internal factors like leadership capacity and engagement quality, and external pressures including level of government and local community culture. Successful cases – such as Flinders and Fremantle – demonstrated the power of genuine, trust-based partnerships and culturally anchored mandates. Conversely, rushed processes and politicised decision-making (e.g., Darebin, Greater Shepparton) undermined trust and deepened divisions. The findings underscore the complexities of building legitimacy in divided communities, especially where cultural sensitivities and political dynamics intersect.13en2025-10-2010.54810/XRIR4287