Local government in India is governmental jurisdiction below the level of the state. Local self-government means that residents in towns, villages and rural settlements are the people who elect local councils and their heads authorising them to solve the important issues. India is a federal republic with three spheres of government: central, state and local. The 73rd and 74th constitutional amendments give recognition and protection to local governments and in addition each state has its own local government legislation.[1] Since 1992, local government in India takes place in two very distinct forms. Urban localities, covered in the 74th amendment to the Constitution,[2] have Nagar Palika but derive their powers from the individual state governments, while the powers of rural localities have been formalized under the panchayati raj system, under the 73rd amendment to the Constitution.[3]