The effectiveness of public servicedelivery depends in large part on the capability, resourcesand inputs, and the motivation of frontline serviceproviders at the local level. In Nepal a combination ofde-concentrated line agencies and local bodies at thedistrict, municipal, and village level provides inputs whichare translated into delivery of service outputs andoutcomes. Yet the relationships between line agencies andlocal bodies in service delivery are not well understood.The purpose of this report is to examine in detail thecurrent dynamics of frontline service delivery to identifyinstitutional limitations and present approaches toaddressing them. This study seeks to map out the dynamics ofservice delivery at the local level through analysis of theinstitutional framework and actual practices in servicedelivery in 14 jurisdictions in the two districts ofDhankuta and Dhanusa. The study includes a detailed reviewof the provision of local roads networks and primary andlower secondary education. In this context, the report isdivided into four parts: part one gives introduction; parttwo presents institutional framework for local servicedelivery; part three focuses on sub-national servicedelivery: local roads and primary education; and part fourpresents conclusions and recommendations to improvefrontline service delivery.