After more than 35 years, the electedlocal government system in Lesotho was reestablished in 2005through the election of the Local Authorities, i.e. theCommunity and District Councils (CCs and DCs). Across thepolitical spectrum, the political will to move forward wasat its peak. An exemplary campaign to educate the entirepopulation as to the purposes and functioning of the newLocal Authorities, and the electoral process preceded theelection. The purposes of the new system are the improvementin services and access to government, broad participation ofthe local population in their own development combined withenhanced accountability to them, and promotion of equitabledevelopment in all parts of the country. The establishmentof the Local Authorities and their election was received byeven the remotest populations with great enthusiasm, and theelected Councilors have taken up their job with energy andcommitment. The objectives of this report derive from thegeneral priorities of the Poverty Reduction Strategy (PRS)of Lesotho which emphasizes pro-poor growth, communityempowerment, improved governance and public sectorperformance. The specific priorities of the PRS have beenset as employment creation, food security, andinfrastructure development, deepening of democracy,governance, safety and security, access to health services,increasing human resource capacity, managing and conservingthe environment, and improving public service delivery.Cross cutting priorities include combating HIV and AIDS, andaddressing gender inequalities as well as issues related tochildren and youth. From among all the possible sectors,agriculture and natural resources were selected because: (i)the local authorities have a mandate for the promotion ofeconomic development and the management of naturalresources; (ii) improvements in these areas are necessaryfor economic development, poverty reduction, and forimproving the tax base and revenue generation capacity; and(iii) improvements require collaboration between localauthorities, communities, sector institutions, and theprivate sector, a collaboration in which the LocalAuthorities sit at the center of the network of co-producers.