In 1999 the government of Nepal passed the Local Self-Governance Act (LSGA) to devolve administrative, judicial and fiscal powers to locally elected bodies. In this context, improving the capacities of communities and marginilisaed groups to participate in local governance and development activities remains a key priority for international donors and the Nepalese government. Mindful of Baser and Morgan\u27s (2008) five core capabilities, this paper reviews an ambitious attempt by the Adventist Development and Relief Agency (ADRA) in Kavre District to enhance local capacity through a two year Leadership and Good Governance Project. The central question explored is whether a combination of government staff training, community mobilisation and active community leadership in 60 micro projects has resulted in increased capacity of CBOs or communities as actors in a participatory development process
