The merger of Federally Administrated Trible Area (FATA) is one of the new and significant changes in the governance structure of federally administrated areas. This study is devoted to analyzing the perception of locals and concern authorities about FATA mergers with KPK with respect to spillover effects of mergers on governance structure and community welfare. In ordered to investigate the perceptions of locals about new governance structure an acceptance index has been developed. To meet the objective of the study field survey has been conducted taking perception of communities and jirga members. The study used narrative and case study approaches to draw a conclusion from collected data. Findings of the study reveal that majority of the people think that merger is far beyond different from their expectations. The community is not on one page with advocates of mergers and people argued that favoring members of FATA merger were portraying in different way before the implementation of merger but after the implementations nothing match their words and merger is implemented in a very different way. The acceptance for new governance structure is quite high but people are not happy with new reforms. Hold on resources from government authorities is their first concern after merger. People are happy for new court system and at the same time uncertain about new system to deal with zero knowledge.