This thesis draws attention to some important factors to consider when proposing community-based rural tourism as a tool for economic diversification among local communities in Botswana. Using the case of a non-wildlife-based initiative at Lekhubu Island, this thesis investigates: the community’s levels of awareness and preparedness to participate in tourism development; the significance of power in the relationship between the state and the community in community-based tourism development process; the challenges facing this kind of community-based rural tourism development as well as implications for its use in rural development. Lekhubu Island is a rural heritage site in north central Botswana. The community of Mmatshumu village located to the south of this Island operates a culture and heritage tourism business at this Island. Activities include camping and guided walks while many others are still in the pipeline.