ABSTRACT In light of economic, social and discursive changes, old-industrial towns and regions increasingly apply entrepreneurial strategies to actively shape discourses as part of place-making processes. Foundational narratives play an important role in this regard. They are used by agents to foster cohesion in a local community, to legitimize and anchor their actions and goals and to make sense of complex development processes. Applying the methodology of Critical Narrative Analysis, the present study zooms in such processes of narrative building in Lauchhammer (Germany). Despite having experienced the decline of the most important parts of its industry, local actors still mobilize the industrial past in order to strengthen local identity and attract new businesses and manufacturers. Yet, the paper shows that different agents foreground different aspects of the industrial past and narratives may be contested. At the same time, local, regional and national development strategies are closely interlinked offering ‘opportunity spaces’ for local actors but raising also questions about a potential (de)legitimization of local narratives.