This study aims to explain resource based reasons behind the rapid emergence of the yacht production cluster at Antalya Free Trade Zone as the first ranking region in Turkey in mega yacht production starting from 2000. Research questions were explored through in depth interviews with the upper level managers of the yacht building firms, the directorates of the Antalya Free Trade Zone and the Zone Operating Company and the Association of Antalya Free Trade Zone Investors, supplemented by some survey questions. The findings indicated that the rapid growth of the yacht building cluster relied on the basic production factors and to a certain extent on the advanced production factors and to favourable demand conditions pointed out in Porter’s Diamond Model; successful firm strategies and competitive initiatives facilitated the development of the collective competitiveness of the cluster, while the taxation, technical regulations and incentive policies under the initiative of the government did not provide adequate support.