ABSTRACT The research thought to establish challenges of decentralization system of local governance in A dye The main objectives were to find out the problems faci ng system; to establish the people attitudes toward the system , compare the decentralization and centralized system .explore ways of how the system can be a module to suit the needs and achieving its intended objectives and generates data that can be used by the government. non-governmental organizations in the field of leadership and good governance ,ministry of local government and other stake holders in the field to improve on the performance of decentralization in Adyel division. The researcher used non-probability and probability techniques of data collection and analyed the data using SPSS version 2.0.The data was presented using graph tables and pie chart. The findi ngs of the study revealed that the major challenge facing the system was high illiteracy rate, corruption among others. This makes the participation of locals remain a challenge the stud} also discovered that despite the different hardship and challenges, some achievement h: improving people's lives have been made and this has been due to the intervention by tht: government and other stake holders . The solution sited include capacity building, inc rease people's pa11icipation. doing away with corruption and having a strong financial base among others
