One of the dominant themes in development programmes over the last fifteen years has been a commitment to capacity building. This paper investigates the forms of capacity building in Aceh, Indonesia, since the devastating earthquake and tsunami that hit the province on 26 December 2004. Despite the preference of the Acehnese people for reconstruction processes based on the principles of community development, local people have been largely marginalized by both the Indonesian government and the international aid and development agencies. The paper suggests some of the reasons for this marginalization.