A performance index for local governance in Tanzania needs to provide a clear indication of how local government and partners can effectively deliver public services, support livelihoods and ensure peace and security.

The selection of indicators for creating an index is critical if it is to be used as a mechanism to hold local government to account. Clear lines of responsibility and accountability need to be incorporated into the selection of indicators so the index can be applied at the local level.

To help in selecting relevant and context-specific indicators for an index of local governance performance, this paper sets out the context of good governance, local governance, accountability and local service delivery in Tanzania.