The article explores the role of art festivals as platforms for knowledge and network development in the creative industries and creative policy intervention using the case of a small street art festival (Fuse Festival in Medway, UK). The analysis provides a broader perspective on the current research and debate on the impact and role played by arts festivals in local economic and cultural development—which usually concentrate on either their socioeconomic impact on local communities—to focus instead of their role in building knowledge communities and communities of practice. The results highlight the key role played by the festival in supporting and commissioning artistic work. The results also expose the temporary and explorative nature of many artistic practices and the role of interaction with audiences and other creative producers. Following a network perspective, the findings highlight the role of temporary clusters not only in shaping career opportunities for artists but also in drawing new pathways for local economic development for contexts undergoing regeneration.