The local governance sector forms the backbone of the public administration and essential services sector in Palestine. This sector consists of local government bodies, which serve as the primary point of contact with citizens, along with the three institutions that provide support and assistance to these bodies based on their complementary roles: the Ministry of Local Government, the Municipal Development and Lending Fund, and APLA.

The Palestinian Local Authorities Law of 1997 and its amendments assign local authorities the responsibility of providing 27 essential services. This law constitutes the legal framework defining the local governance sector in Palestine. It stipulates the establishment of local units with legal personality and financial independence, managed by elected councils whose number of members corresponds to the population size. Their competencies and financial resources are clearly defined, and they are entrusted with key roles summarized as follows:

• Provision of basic infrastructure and other public services
• Regulatory and developmental role
• Developmental role