This handbook serves as a practical guide to USAID officers who are faced with the task of developing program activities in the areas of decentralization and democratic local governance. Drawing on 15 years of USAID experience in democracy promotion and on four decades of municipal development work, this publication provides a conceptual framework; guidance for choosing successful programming strategies, for selecting entry points and tactics in program design and implementation, and for mission monitoring and evaluation; and a discussion of key lessons learned and future programming issues.