Open development has been conceptualised as initiatives that use information technology to foster citizen participation and freedom of debate in development projects. The Internet has brought hope that citizens would have an opportunity to organise campaigns, thus fostering democracy. These possibilities face a number of obstacles. Analysing case evidence from Iran, this study explores how institutions have influenced the forms of appropriation of Internet tools in initiatives intended to enable open development. The paper contributes to our understanding of institutional mechanisms for controlling and constraining open development initiatives, and the relevance of institutional environments when planning open development projects.