The purpose of this research is to determine to what extent an agency's Knowledge Management Practices influence the successful transformation of the agency to a citizen-centered, results-oriented and market-driven e-government. A survey was conducted with Knowledge Management (KM) practitioners in federal agencies to find out which KM Practices were implemented by the agencies, and assess their perception of the successful results realized in their agencies from the implementation of KM Practices. One of the central findings of this study was that in order to implement e-government practices it is necessary to move away from agency cultures of bureaucracy to organizations that are flexible, adaptable and open, which better fit the needs of the twenty-first century.