Abstract. Full Text Article available at: https://www.tandfonline.com/doi/abs/10.1080/01900692.2010.514454Many governments have promoted decentralization, but opinion is divided on whether real devolution of authority from the centre to the local level has occurred. This article uses a study of the Local Government Reform Program (LGRP) in Tanzania to explore whether decentralization is realizing its objectives. Our findings are that LGRP has led to a significant devolution of authority and resources. However, persisting capacity deficits, increased financial dependence on the central government, and political and institutional constraints mean that the achievements have fallen short of the reformers' intentions. The study suggests that even where political will to decentralize exists, it has to translate into identifying and dealing with stubborn and subtle constraints such as, in this case, the contradiction between a new devolved structure and a persisting deconcentrated structure in order for decentralization to reach the logical conclusion that the reformers intended.