The aim of this study is to analyze the working of local government in Pakistan and take an overview of decentralization. Decentralization is simply the creation of local bodies and devolve them authorities. So, analyzing the working of local government is indirectly analysis of decentralization. Decentralization is a path toward development and growth if it is implemented with true spirit, which can be examined in this thesis. Infrastructure, monitoring and political participation are used for assessing the overall working of local government in Pakistan. Liquid scale questionnaire technique is used for data collection from general public of Rawalpindi city. The findings of the study assert that people are satisfied with working of local government comparatively from central government. Results recommend the need of formation of local government and three points are essentials for this. First, constitutional support for local government which clarify the authority and responsibility. second, proper regulation of election commission of Pakistan which enforce scrutiny and minimize chances of corruption and finally implementation of all fiscal, political and administrative decentralizations together. Supervisor:- Dr. Karim Khan