This article focuses on the development of Tanzanian local governments. lt starts by presenting an analytical framework for the study of the state, local governments and administrative capacity. Next, it seeks to trace the development of local governments in Tanzania since independence. Third, in order to illustrate the outcome of these developments “on the ground”, it makes an assessment of the capacity of one district council, Kigoma in Eastern Tanzania. Finally, I try to draw some conclusions about the prospects of capacity building in Tanzanian local govemments.