Since 1999, Tanzania has been actively pursuing reforms of how the central government finances local government activities. Although local government authorities play a significant role in the delivery of key government services such as primary education and basic health care, the central government tightly controls the resources which it provides to the local government level. The book presents a detailed overview and analysis of the issues involved in developing and implementing local government finance reform in Tanzania, including the introduction of a formula-based system of intergovernmental grants.