During the last two decades knowledge based development has become an important mechanism for knowledge economies. In a knowledge economy information and communication technology is extensively seen as a potentially beneficial set of instruments, which may improve the welfare and competitiveness of nations and cities. At present both public and private actors aim to exploit the expected benefits of information and communication technology developments. These technologies offer unprecedented promise for social and economic development on all global, national, regional, urban, and local levels. Therefore this chapter seeks to investigate the potential of information and communication technology policy at both regional and urban levels, and in particular to shed light on various factors that influence urban information technology policies in the public domain. The chapter sets out to explain the knowledge based urban development processes and challenges and opportunities in information acceptance and use in urban policy making in Queensland, Australia. This chapter draws on providing a clear understanding on policy frameworks and relevant technology applications of the Queensland ‘Smart State’ experience.