Two towns, Outapi and Ondangwa, located in the populous north, are used as case councils. An important element of the study is to explore the relations between the local governments and citizens, and the ability of civil society to act as development agents. Hence, the report examines challenges for improved service delivery as seen from (i) the two local government institutions finding themselves in between the central government and its own poor population; and (ii) the informal settlement population with hitherto unfulfilled expectations for basic services. Also available from: UNICEF Namibia Information Centre, P.O. Box 1706, Windhoek. Tel: +264 61 204 6275, E-mail: gkolling@unicef.org.