Abstract While decentralization has long been promoted in response to over-centralization by the federal government, less research has examined to what extent decentralization has yielded municipal accountability. Decentralized arrangements are believed to allow more governmental responsiveness to local demands, varying tastes, and consumer mobility. They also mobilize political participation and strengthen democratic structures. Yet, concerns about decentralization highlight the importance of subnational government institutional development and fiscal discipline. Central to the concerns is whether municipal governments have the capacity to manage their own resources responsibly and accountably. This paper examines, through qualitative study, the strategies used by municipal government officials and institutional arrangements in Brazil to improve the accountability and transparency of local government. The results show that efforts to increase economic, administrative, and political accountability are sig...