In this study we examine the capacity of partnerships to generate the types of transformational outcomes that are being sought through policy. In doing so, we explore the types of policy inducements that generate partnerships and whether these are important to the generation of desired outcomes. We also examine the embeddedness of the relationships amongst partner organizations. In evaluations of partnerships there tends to be a bias towards treating the partnership as a new relationship amongst organizations. However, many partnerships are long standing relationships amongst organizations. Such a history can have a significant impact upon the types of costs and the level of trust experienced among partner organizations.