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Between 1996 and 2000 the Mexican government developed and implemented an innovative programme for regional sustainable development (PRODERS). This programme was designed as the anchor for Mexico’s sustainable development policy, and was founded on the principles of participation, decentralisation and integrated development. Participatory policy analysis was used to understand the successes and shortcomings of institutionalising participatory approaches in government and civil society organisations working at the local, regional and national level. While PRODERS failed to live up to expectations, the experience raises interesting lessons in implementing a national public policy of sustainable development and participation.