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"Dual Power" was originally invented by Lenin. He claimed the period prior to October was a period of "dual power" where a workers' state & a bourgeois state existed side by side.

Anarchists later co-opted the term to describe a completely different idea. Basically, dual power theory in the anarchist sense is a new version of the "building the new world within the shell of the old" idea. Building alternative organizations in the here and now that undermine the old order and create a new system. See http://www.dualpower.net Anarchy magazine had a critique of the idea a while back, check their online archives.