The author argued that the absence of a local governance policy is a priority governance problem in Bangladesh, which affects effective implementation of decentralisation policies and programmes sporadically undertaken from time to time. Democratic decentralisation in line with fiscal autonomy and local administrative reforms have been in limbo for over three decades. The absence of a clear policy affects institutional linkages of the local government bodies. In some cases overlapping of functions are evidenced in different local government institutions, while in other cases lack of coordination and inter-agency cooperation are also evident. More importantly, unless Bangladesh does develop an aggregated local governance policy, it will not have a vision and road map for development of local governance.