This report examines the inception and implementation of the decentralisation policy in Uganda and proposes somes reforms. It is an outcome of a comprehensive study of how the decentralisation policy was implemented. It seeks to appraise the practice in terms of achievements and challenges in the legal, policy, and institutional framework. Uganda conceptualised the decentralisation policy and programmes to: build democratic governance, responsive and accountable to the public; and promote capacity building at the local level. This was to be achieved by introducing local choices into the delivery of services, and fostering a sense of local ownership. From this perspective, decentralisation was for better services delivery to the people. It was also hoped that once decentralisation was undertaken by government, the local populace would own up government programmes. They would be more willing to participate and possibly contribute to the sign and implementation of such programmes and even be ready to pay taxes. The decentralisation policy continues to be relevant for democratisation and political out reach. Nonetheless, study findings show that the decentralisation policy has suffered adverse financing constraints and several other challenges discussed here.