This document summarizes a local development pilot project on the Island of Cres in Croatia. The project was a collaboration between the Croatian Ministry of Culture and the Council of Europe to create a long-term development plan for the island based on its cultural heritage and traditions. Over 100 local stakeholders participated in workshops to analyze the island's landscape, heritage, economy and governance. This led to the production of a diagnostic report, territorial strategy and charter. The strategy aims to improve quality of life and stop depopulation by capitalizing on the island's unique cultural assets and traditional industries like agriculture, fishing and tourism. The project established management structures and seeks to demonstrate how heritage-led, community-driven development can achieve long-term, sustainable