Many countries of the globe, especially developing countries of Africa, Latin America and Asia, are currently undertaking new progrmmes of decentralization in governance and public administration for several reasons with varying degrees of realization, but one thing is common, at least in paper aspiration, that is the improving local governance and development. Unlike herein Bangladesh the key likely challenges for local governance are outdated & controversial laws and lack of local resources, material, finance, expertise and competent leadership. Here among the rural local government institutions the Zila Parishad is running without an elected Parishad, while the existing Union Parishad has been waiting for years to have its overdue election that is likely to be held in early 2011. And the regenerated Upazila system with democratic decentralization has just started its journey. The local government institutions in general, upazila parishads in particular are passing through a transition. It is expected that transition will be over with effecting new local government acts by issuing subsequent rules and regulations and by amending some obsolete and controversial laws soon. Thus, herein the local government system is probable to see the sunrise.