This paper uses three examples of educational innovation emerging in the contemporary context of market-liberal reform as a focus for exploring the patterns and possibilities of civic formation. The first part of the paper contextualises contemporary civic formation within the long historic struggle between capitalism and democracy, highlighting the way citizen learning is being reconfigured as markets and state are mediated by community interests. The last section attempts to draw out the key features of this community-based citizen learning and its implications for citizen learning and action. This discussion provides a basis for clarifying the kind of civic and citizenship education that is needed to take community-based learning beyond localism towards formal civic engagement that can sustain and protect democracy. The idea of a "learning citizen" is suggested as a way of conceptualising and acknowledging the contradictions within this citizenship agenda that holds the imperatives of lifelong learning in tension with the imperatives of educating citizen. (Contains 1 figure.)