Knowledge management, popularly known by its acronym KM, as is known today, is only 5 to 15 years old and is a distinct contribution of the private sector where the concept of knowledge as a “competitive advantage of the firm” and “knowledge capital” hold the sway. It is only recently that knowledge management (KM) has started making entry to public sector. One of the reasons for this development has been the emergence of information and communication technologies (ICTs) in the last decade and the emergence of knowledge worker and the knowledge economy. Solow remark, made 20 years ago, that “You can see the computer age everywhere but in the productivity statistics” (Solow 1987) still survives. However, ‘There is now persuasive evidence that the information and computer technology (ICT) investment boom of the 1990’s has led to significant changes in the absolute and relative productivity performance of firms, sectors and countries’ (Hughes and Morton 2005, p-3). More specifically, e-government contributes to economic development. For example, the overall GDP growth attributable to e-government in the period 2005-2010 in the European Union has been estimated at 2% (Corsi et al. 2006, p-5). For suggesting guiding principles, the importance of e-government is described and five popular myths in knowledge management for e-government exploded, issues in knowledge management for e-government identified, the knowledge pyramid, types of knowledge places where knowledge can be kept, and dimensions of knowledge management are described followed by a stocktaking of knowledge management (KM) toolbox (De Brün 2005). Then a knowledge management cycle consisting of six phases of: 1. undertake knowledge audit, 2. create knowledge, 3. capture knowledge, 4. store knowledge, 5. use knowledge, and 6. review knowledge is developed.