“This report analyses data on service delivery and poverty alleviation from 2000 to 2003. The emphasis is on describing the situation at a certain point in time, in line with a baseline approach. However, much of the description is based on citizen’s perceptions of performance and changes in service delivery, thus leading to a more evaluative analysis. The findings in this report can be summarised as follows: local service delivery in Tanzania has improved, but the citizens are still dissatisfied with the accessability, quality and affordability of almost all public services. The exception is primary education, where donor and government led progress through the PEDP, comprehensive community involvement and high citizen satisfaction coincide.