The decentralisation reform has raised high expectations that public policies will be brought closer to citizens and that public service delivery will become better tailored based on a bottom-up approach. For this promise to materialise, and indeed have a positive impact on local communities and economic activity, this chapter identifies four conditions that should be fulfilled: 1) a transformation of Local Development Units (LDUs) to act as cornerstones of the public administration at subnational level and for local development; 2) a clarification of the administrative and financial autonomy of subnational government institutions in addressing day-to-day service demands; 3) a coordinated dialogue between the central, governorate and the municipal levels in the identification of citizens’ needs and in rolling out Governorate Development Plans; and 4) a strategic approach to reinforcing capacities and training among local civil servants and elected officials.