The external contexts and influencing factors include the various macro level transformations, as well as the policies and actions of the national government and support from international donors. Internal contexts and influencing factors include cooperation among local governments and the particular characteristics of local governments(such as visionary leaderships and/or responsive and capable bureaucracy). The capability of the local bureaucracy includes financial and technical capacities, as well as the political-administrative independence of the local government Meanwhile pressures from intercity cooperation, and civil society in general, are located in-between. The challenge for actors in this context is to establish a sustained capacity in local government to continue externally funded programed and institutionalize this capacity as part of its independent programs. In doing so, internal actors face the challenge of limited resources and uncertainty about the strategy to be used that best suits the local context.