PCF3 // This paper discusses effective leadership in online teaching and learning involving capacity building, so that leadership occurs at multiple levels in order to sustain and transform learning. Literature conceptualising leadership as capacity building is examined. The paper considers practical examples of leadership as capacity building in online teaching and learning, and poses questions for further investigation. // Effective leadership in online teaching and learning must involve a significant element of capacity building, so that leadership occurs at multiple levels in an organization in order to sustain, renew and transform teaching and learning for the future. As Lambert (1998, p.75) points out, “increasing leadership capacity over time is the most productive way to bring about improvements that can be sustained”. // Building leadership capacity in online teaching and learning is an issue because it does not always happen. Individuals who have taught online may leave the organization and capacity is thereby lost. Online learning and teaching is affected, as finding staff to teach in online papers can be a challenge. // Paradoxically, online teaching and learning may hold the solution to its own dilemma, as the key to learning to learn and lead in online teaching and learning lies within the online settings: one builds capacity for leadership in online teaching and learning by engaging in learning and leading with a mentor or team within these settings. // Leadership obligations in online teaching and learning therefore include the need for those who teach and learn online to work together, ensuring benefits to students, reciprocal learning for teachers involved, as well as a measure of accountability, and ultimately building of leadership capacity.