There are increasing pressures for universities to commercialise their research and increase their contributions to their local and regional environments. For those institutions located in areas of low demand, this can lead to a low-impact equilibrium of universities working with external partners, and having relatively low impact. In such circumstances, universities have to "build up" local demand for their knowledge. But this is long-term, costly and volatile, and so partnership and collaborative models of capacity building may be one way for universities to maximise the benefits whilst minimising the risks. In this paper, we explore how capacity in such situation builds up, and whether university regional associations (URAs) can help universities to develop regional capacity in such situations. The case study demonstrates that URAs can become a focal point for a community of regionally engaged university actors. It is this community which can help universities to rationalise and make sense of local uncertainties, and thereby increase total university regional contributions.