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The objectives of this research were to study the level of leadership potential in Pong Yaeng Sub-district and study the potential of leaders’ relationship that affect the economic development process. This quantitative study’s sample consisted of 40 formal and informal leaders in Pong Yaeng Sub-district, Mae Rim District, Chiang Mai Province. Data were analyzed using descriptive statistics consisting of Frequency, Percentage, Mean, Standard Deviation (SD), and assuming Correlation. The results of the data analysis revealed that Community leaders were both formal and informal leaders in equal proportions who have lived in the area for 51 years or more. Most of them were males, aged 51 years and over with vocational /high vocational certificate with their position as leaders of the local government organization. In terms of the analysis of the potential of community leaders in Pong Yaeng Sub-district, Mae Rim District, Chiang Mai Province, it was found that the community leaders had a high level of potential, that were the potential for creating a process of participation, as well as the potential of community and resource management and communication capacity, respectively. Additionally, when analyzing the relationship between the potential of community leaders with the community economic development process, it was found that the leadership's potential in community and resource management were related to the community economic development process in all aspects. On the other hand, the potential of leaders in creating participatory processes was related to the community economic development process, building understanding about community economic development and mechanisms for joint management, but not in the development of the planning process. In addition, the potential of communication leaders didn’t related with the community economic development process in all aspects.
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