(total newbie) Collaboration tool?

Hi
I’ve just discovered WordPress and wondered if you could help me with a basic question?
I want to do some writing with one other person, make suggested edits to each other’s stuff, that kind of thing. But not necessarily publish to the world (although that might come!)
Would this work for that – perhaps with us both using MacJournal as a ‘client’? It looks like I can install WordPress on my server with Fantastico so that should be OK.
Thanks for any pointers