The profound changes in state structures and relationships that have affected the workings of many European liberal democracies in the last decades of the twentieth century have had important implications for the ways in which decisions are taken, implemented and assessed by the state. The emergence of the consumer and environmental movements has foc used attention on issues of quality, sustainability and services responsiveness. The introduction of market mechanisms has necessitated improvements in service specification and the ongoing development of commonly understood pcrfonnance measures and the involvement of new actors in decision-making processes have challenged many of the pri nciples and practices of public administration and service delivery at a local level. This article considers claims that these changes have resulted in a new system of governance emerging at a locallcvcl. The article then focuses on the relationship between local government and the local development sectorl in the context of an emcrging system of local governance. It considers the experiences of the interaction between local government and local development agencies, in particular the afCa partnerships, as they pertai n to the development of new forms of decision-making at local level. The article suggests that despite the establishment of new structures and agencies to support the emergence of a system of local governance, these developments are by themselves insufficient to secure effective local governance. Accordingly, it recommends that a more robust fonn oflocal government should seek to use its community leadership role to embed appropriate systems of accountability and seek to 'join up' local action (Sullivan, 2003, 354).