It is not possible to govern a modern state without extensive local government, but it is also impossible to govern it if local government is not responsive to the demands of a central power, nor answerable directly to the citizens. Local government is a public organization authorized to administer and decide a limited range of public policies pertaining to a demarcated territory within a larger and sovereign jurisdiction. The book is divided into six chapters. Chapter one provides the introduction of the research topic. Chapter two describes the concept of decentralization and a brief historical background of devolution in Pakistan. Chapter three examines the devolution plan implemented by President General Pervez Musharraf. It explains the key changes and structures of the devolution plan. Chapter four deals with local government’s relations with the provinces. In chapter five efforts has been made to throw light on relations between the central government and local bodies. Chapter six provides the conclusion of the research.