This chapter explores local e-government and the provision of online spaces for citizen participation. It highlights how different approaches to e-government development and implementation contribute to the likely success of participatory practices in informing decision-making and enhancing civic engagement with government. A comparative examination is drawn from the experiences of two local governments – the City of Casey in Australia and the Italian City of Bologna. The City of Casey’s e-government prioritises service delivery, with opportunities for participation largely restricted. In contrast, the City of Bologna facilitates two-way online citizen discourse and deliberation, which is used to enhance public policy. This chapter highlights that institutional contexts, including insufficient policies and the understandings and motives of political actors, affect the development of participatory e-government and the use of citizen contributions in decision-making. It suggests that successfully facilitating civic participation and engagement through e-government requires strong policy frameworks guiding online content and applications, and a broader change in governmental culture so that representatives are receptive to civic views.