The research observes the role and importance of local government administration in community development with particular reference to Obowo local government area of Imo state. The research work adopted the structural and functional theory as a theoretical framework for analyzing the performance of the local government. This research contains five chapters, chapter one deals with the background of the study, statement of problem, objectives of the study, research questions, significance of the study, scope of the study, limitation of the study, definition of terms. Chapter two deals with literature review which review all aspect of creation of local government as a development oriented policy in Nigeria, definition of local government, function of local government , statutory status of local government, local government as agent of grass root development and references, chapter three covers research design and methodology, introduction, research design, method of data collection, population and sample size, sample techniques, validity and reliability of measuring instrument and data analysis techniques, while chapter four deals with the presentation and analysis of data, introduction, presentation of data, analysis of data, test of hypothesis, interpretation of data. Finally chapter five deals on summary, recommendations, conclusion, references, questionnaires and appendix.