The research focuses on the effectiveness of decentralization as a tool for community development in Nadowli /Kaleo district. It generally aimed at examining two basic indicators of the effectiveness of decentralization which included the level of community participation / decision making and resource allocation in the district. Both quantitative and qualitative data were gathered through interviews and surveys by the use of questionnaires. The research targeted 14 key informants from the Nadowli/ Kaleo district Assembly and 96 heads of households from Nadowli and Kaleo. The research indicated that, although there is some level of community involvement in developmental activities and resource that flow from the national level to the local community through the assessment of community needs. However, decentralization in the district is in the process to achieve effectiveness. The reasons were given to be that, there is some level of centralization, where decisions are still taken without community involvement.