This note discusses the interfacebetween community-driven development (CDD) anddecentralization. In particular, it focuses on the aspectsof decentralization programs related to local governmentcapacity building, where the practical application of CDDprinciples becomes meaningful. The note considers how theprinciples of CDD are being incorporated into localgovernment capacity building projects, and examines wherepotential limitations may exist. It does not intend to be acomprehensive review of either CDD or decentralization butrather to use a few examples, especially in projects underpreparation or implementation in Africa, as illustrative ofthis emerging approach.