Local development grants have emerged in the recent past as a new intergovernmental fiscal transfers system in which specific actions are requested, received and paid for. Uganda is such a country that has embedded fiscal incentives into its conditional grants system, through transfer of local development grants from Central government as budget support to local governments to stimulate funding in specific areas to improve service delivery. This publication provides an enriching experience of Wakiso District Local Government in utilizing local development grants to improve services. It presents findings from a study that sought to establish the extent to which management of local development grants influences service delivery in Wakiso District Local Government. Local development grants management examined: decentralized planning, budgeting, implementation and monitoring and evaluation, in service delivery. This study concludes that giving the grants is not sufficient to achieve results but its management determines the quality of services delivered. Local development grants have therefore enhanced promotion of participation, transparency and accountability in delivering services.