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AbstractThe establishment of an effective local government system has been imperative in the Sudan both on account of the vast scale of the country and the decentralization policies of successive governments. District councils were initially established in 1951 following the Marshall Report, but were by stages superseded as budgetary authorities, and reduced to unimportance by the People's Local Government System in 1971, which vested responsibility in Councils at the Provincial level. The subsequent difficulties experienced by this system indicate the value of the District, now renamed Area, as a level for a multipurpose local authority in the Sudan, and explain the reemphasis of this level in the 1981 Local Government Act.This article summarizes the experience leading up to the 1981 Act, and examines the extent to which the new legislation offers an effective structure. The finance of local government, a recurrent problem in the Sudan, emerges as a critical issue, together with the future role of the Provincial Commissioner.