This research analyzed the collaboration between cooperative (coop) and local government units (LGU) in various projects to improve community members' lives. The study also delved into the government-initiated cooperative and the policy support provided to foster the growth of the coop as an agent of community development. It also highlights the importance of dynamic partnerships in facilitating the claiming of fundamental human rights through sustained cooperation between a cooperative and Local Government Unit. The study employed a case study methodology, focusing on government-initiated cooperatives with at least fifteen years of operation. The data gathered from structured interviews, observation, and document reviews to capture the experiences and strategies of the cooperatives were analyzed and processed. Based on the results, the government-initiated cooperative evolved through various stages from their formation to progression, with the LGU playing a pivotal role in their development. The LGU's involvement includes enacting local laws, facilitating the cooperative's participation in regional planning, promoting sectoral representation, enhancing access to finance and services, and engaging in public consultation. The study advocates for improved interaction across all government levels (national, regional, and local) to foster effective policies. These are instrumental in building a more inclusive economy and creating tangible and impactful changes. The government-initiated cooperative has unique formation processes and strategies. Economic, social, and cultural rights emerge as the most significant areas where a cooperative can support its members collectively. Moreover, the government's regulatory powers should focus on the policies that directly affect the cooperative and its community members, improving services for the cooperatives, such as registration and eligibility, capacity development, financing, and technical assistance. Both cooperative and LGU employ diverse strategies for community development. Local government units provided the cooperatives with material, financial, and policy support. The cooperative must actively pursue spaces and strategic positions to facilitate people's fundamental human rights and influence decision-makers and players.