Working in partnership with a community agency in a socially disadvantaged area of Melbourne, this research used an appreciative inquiry approach incorporating action research principles. Year 10 school students designed and successfully undertook community-building projects as part of a school subject, but with student control. Participants had previously reported a sense of alienation from their neighbourhoods and were in danger of disengaging from school. However, through the process of appreciating their identity and successfully creating community projects, the participants reported feelings of positive identity affirmation and being able to make a difference in their communities. Participants began a social transformation process of developing new positive narratives for an improved sense of community connectedness.