Local Governance Act, 2074.

The Local Government Operation Act, 2074 lays down the legal foundation for legislative, executive and quasi-judiciary practice of local government. The finds its basis in Article 296 (1) of the Nepal Constitution of 2015. Its aim is to enhance local leadership and the local governance system. The Act stipulates arrangements related to authorities, duties and responsibilities of local government, assembly meeting and working system, assembly management procedures, plan formulation and implementation, judicial works, financial jurisdictions, administrative structure and district assembly, among others. It describes about the criteria to divide a state into municipalities or rural municipalities and respective rights, duties and responsibilities in different development and conservation sectors. It clarifies the rights of municipalities/rural municipalities and wards to make local laws, regulations and criteria for conservation of environment protected areas and species; for environmental pollution and hazard control; solid waste management; for drinking water supply, works related to drinking water, micro hydro projects and alternative energy, watershed and water source conservation, etc.