This paper suggests that imagination ferments regional development. The paper considers how education, and in particular regional universities, are part of the regional development cocktail. Using contemporary and historical experience at the Shoalhaven Campus the paper explores how Shoalhaven campus can be seen as an integral ingredient in the Shoalhaven development cocktail. In doing so, it provides an analysis that matches other regional campus experiences. What is Shoalhaven Campus? An educational precinct based on a campus co-location model. In this instance, TAFE and University are co-located on the campus grounds and share library, IT, telephone and campus services facilities. The inputs, which mean the campus develops, are matched by the development of the region. Imagination is the alcohol in the cocktail. The university needs a symbiotic process whereby it is imaginatively blended into community networks with information and inspiration flowing into the regional development process.