Based on a study of public-private collaboration in partnerships for integrated environmental management and business development in two Swedish regions, this paper aims to elucidate the conditions for collaboration on sustainability issues amongst different local and regional actors. From interviews with local and regional public administration officers and with CEOs of several SMEs, it was found that public-private collaboration related to sustainable development does exist and takes place in many different ways. In common, however, local or regional authorities initiate them all, indicating an asymmetric interest in public-private partnerships. In relation to the interest asymmetry, which could also be seen as an expression of asymmetric power-dependence relations between SMEs and public authorities, with SMEs as the stronger part, a limited knowledge among SMEs about their role in larger contexts and different understandings of sustainable development among the regional actors, the major obstacle for public-private collaboration seems to be the limited confidence in local and regional authorities among SMEs. In all, there seems to be a need for further discussion in the regions and local communities on views of and potential ways towards sustainable development, which also includes the articulation of the roles of different actors. © 2003 John Wiley and Sons, Ltd and ERP Environment.