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The study provides the contribution of decentralization in promoting local development. Both qualitative and quantitative approaches were employed to collect the data for the study. The instruments used to collect the data are survey questionnaire, interview and focus group discussion. Primary and secondary data were collected from different actors of development in the Wereda as well as official reports and documents were consulted from Gozamin Wereda sector offices. The analysis was supported by literature, legal and official documents. The Major findings focused on health, education, agricultural extension services and political powers of local Councils and their duties were depicted as follows. On average, the services in health, education and agricultural extension have increased by 35%, 5% and 6% respectively during the last eight years. The community participation in socio-economic development activities has increased by an average of 22% during the last consecutive eight years, and their major contribution were focused on cash, material and labor for the construction of health centers, schools, farmer training centers, potable water points and rural roads.