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Society centred interpretations of social capital are inadequate to explain the economic fortunes and social prosperity of rural Australian communities. This research sought to assess the relationship between different interpretations of social capital and rural communities resilience and prosperity. The primary objective was to test the association asserted between levels of social capital and prosperity and resilience in the rural Australian context. The research highlights three notable issues. Surveying social capital with society-centred approaches is only effective in establishing the well being of communities which relates to their resilience, not an ability to prosper. Secondly, the responsibilities for social capital generation adopted by governments dictates the manner and degree to which they acknowledge and utilise bridging and linking networks, affecting the role social capital is perceived to play in communities. Lastly, while social capital is regarded as a normative social factor, rather than being comprised of different and dynamic elements affecting communities ability to prosper, the concept will remain unable to effectively contribute to the policy domain.