This study uses a Diagnostic Framework for Local Governance (Yilmaz et al 2008) to evaluate the current capacity for administrative decentralization at the county level in Liberia, as well as to identify political economy challenges and opportunities surrounding decentralization. Applying the Problem Driven Iterative Adaptation (PDIA) framework to our findings, we offer recommendations for moving decentralization reform forward. We find strong demand for administrative decentralization among local officials, and propose decentralization reform can be enhanced through incremental implementation that focuses on strengthening the existing structures and capacity of local administration, and through creation of stronger accountability and participatory mechanisms. The triangulated research design includes focus group and interview data in 8 Liberian counties, analyzed using NVivo Qualitative Data Analysis Software.    This article is protected by copyright. All rights reserved.