Aligned to the principle that development needs to start with what people know and build on their knowledge and experiences, the authors of this paper provide some examples of how important indigenous or local knowledge is to its users, different ways in which they use this knowledge, and the potential that indigenous knowledge has in some areas of agricultural development. The paper looks primarily at recent examples of agricultural practices in which resource-poor agrarian householders have used their indigenous knowledge, as well as innovations to overcome many of the socioeconomic, political and environmental constraints they experience. It concludes with some suggestions for agricultural development policy practices of specific importance to agricultural research and extension policies in South Africa.