Book excerpt: Understanding the capacity of food systems to undertake a transformation towards sustainability requires understanding how resources stream in and out of the systems. As complex socio-economic structures, food and agricultural value chains are important means for channeling resources, knowledge, and agency in and out of rural areas. Given their prominent role on the development agendas, there is mixed evidence as to what extent value chains and their actors can contribute to improving the livelihoods in poor rural and urban areas. In order to shape sustainable living places, transformative capacities and good governance are important mainstays. Transformative agri-food value chains are robust and often act as the sole transmission belt for returning capital, resources and identity back into vulnerable areas. Moreover, domestic or regional chains may provide urban consumers with fresh quality food that also contributes to regional identity.