Environmental compliance in the development projects is regarded as very significant for ensuring sustainable development of a country. In Bangladesh, different environmental Acts and Ordinances have empowered local government bodies to take care of environmental issues in their development activities/projects. At the time of planning and implementation of these development activities/projects, these bodies have to identify and determine the impacts of such activities/projects on environment and natural resources, and take necessary steps to avoid or reduce the adverse environmental impacts of these activities/projects. Otherwise, due to poor planning and implementation of development activities/projects without adequate assessment of potential impacts, physical and biotic environment is significantly changed and many environmental problems take place. This article is an attempt to explore different guidelines and procedures in accordance with environmental rules and regulations to consider environmental issues in preparing development projects by local government bodies of Bangladesh. It also identified the problems or weaknesses that resist the free process of environmental compliances in development process and suggests some recommendations