Virtual Government, exemplified by online service delivery, is a reality. The focus is now shifting towards developing citizen interaction in the web space. This paper provides a new conceptual model, applicable to all levels of government from federal to local, to support this shift. In doing so, it seeks to clarify the roles of e- government and e-governance in implementing the goals of virtual government. The concept of the e-space is introduced and proposed as the basis for assessment of the outcomes and outputs linked to these goals.