Local residents are working with businesses, government departments and charity groups in a collective approach to tackle the area's complex social problems as part of an innovative competition called The Search.

Claymore, in Sydney's south west, is competing with 10 other disadvantaged communities around Australia for a chance to win $1 million by devising the best collaborative plan for a better future.

The Search was devised by the Centre for Social Impact with chief executive Andrew Young saying a collective approach is the key to addressing problems unchanged by short-term individual programs.

"We're looking for something that looks more like a Holy Grail than a silver bullet," he said.

"We have to forget about the silver bullet. It does not exist. There is no one program which will make a difference."

Established as a public housing estate in the 1970s, Claymore has a high concentration of entrenched disadvantage which includes low educational attainment, intergenerational unemployment and welfare dependency.

Kelly Hinton, state manager of youth support group Whitelion which is involved in the Claymore collaboration, said the suburb also has the will to change.

"Claymore's strength is its people," she said. "They want to address some of the social problems in the area to create a strong future for the community."

Even if Claymore does not win The Search, funded by a consortium which includes the Centre for Social Impact, the Westpac Foundation and Social Ventures Australia, Ms Hinton said the community has enjoyedtaking part.

"Regardless of whether we are successful or not, what this has done has brought a new sense of self-esteem to the community," she said.

"Claymore is a leader in the area of collective impact. We know that short-term projects which disappear when the funding runs out do not achieve what a group of like-minded people working together can.

"This is an innovative approach which directly involves the people who stand the most to gain – the local community."

Local resident Julie Jarrett said The Search was a chance to focus on the positive.

"Community members young and old have spoken – and finally people are listening," she said. "We are proud of our community, and excited for the opportunity to show Australia how we are working together to make it better than ever before."

Claymore is competing against 10 other collective impact pitches which include a youth justice program in Bourke, an employment plan for Geelong and a social equity concept for Logan, on Brisbane's outskirts.

The recipient of $1 million over three years will be announced at Admiralty House on Wednesday but Dr Young hopes The Search will be an ongoing event.

"We hope all the communities will continue to be a part of it and other communities learn from that," he said.