Local Governments Act of Bhutan, 2007

This Act is enacted to facilitate direct participation of the people in the development and management of their own social, economic and environmental wellbeing through decentralization and devolution of power and authority.
There shall be Local Governments in each of the twenty Dzongkhags. Each Dzongkhag shall be divided into several Gewogs. Larger Dzongkhags may be divided into Dungkhags which shall comprise of a number of Gewogs. A Gewog shall be made up of several Chiwogs. A Chiwog may comprise of several villages. Local Governments shall comprise the following categories: a) The Dzongkhag Tshogdu, supported by the Dzongkhag Administration in each Dzongkhag; b) The Gewog Tshogde, supported by the Gewog Administration in each Gewog; and c) The Dzongkhag Thromde Tshogde, supported by the Dzongkhag Thromde Administration in each Dzongkhag Thromde. The election of the members of the Local Governments shall be governed by the provisions of the Election Act of Bhutan.
Functions of Local Governments include: (a) Provide democratic and accountable government for local communities; (b) Ensure the provision of such social and economic services for the general wellbeing of the residents of the communities in a sustainable and equitable manner; (c) Ensure that development occurs in a planned and harmonious manner; (d) Undertake any activity consistent with other relevant laws and policies; (e) Encourage the involvement of communities and community organizations in matters of local governance; etc. Local Governments shall be entitled to financial resources from the Government in the form of annual grants.