• Local governments are given autonomy and are clearly perceived of a separate level over which central authorities exercise little or no direct control.
• Local government must have clear and legally recognized geographical boundaries over which they exercise authority and within which they perform public functions.
• Local government must be given power to raise sufficient resources to perform specified functions.
• The need to develop local governments as institutions in the sense that those local organizations providing service that satisfies citizens' needs at local level.
• It is an arrangement in which they are reciprocal mutually benefiting and coordinate relationships between central government and local governments.