The purpose of this study was to assess local good governance in Wolkite Town Administrationrnin Guraghe Zone, SNNPRS. The study employed a cross-sectional survey research design along rnwith mixed approaches - quantitative and qualitative. The target population of the study consists rnof the households that are found in the town. The participants were drawn from the four kebeles rnusing cluster, proportionate stratified and systematic sampling techniques so that 396 rnhouseholds were selected as a sample. In this study, the relevant data were collected through rnquestionnaire, key informant interviews, focus group discussion, and document review. The rnquantitative data have been analyzed by using frequencies and percentages, whereas the rnqualitative data was narrated systematically using content analysis approach. The findings of rnthe study showed that lack of network and cooperation among different offices in the rnadministration and between the community and the administration, lack of direct accountability rnto the public, low level of participation of the community, violation of rule of law and the rnpractices of corruption and discrimination in municipal office were highly prevailing challenges rnof practicing good governance. Based on the findings, the following recommendations are rnforwarded: possible mechanisms should be taken by the administration that would help to rnincrease the level of good governance are empowering the capacity of judges and equipping the rncourt with the necessary materials, enhancing the awareness of the community about good rngovernance, establishing local controlling mechanism, strengthening cooperation and network rnamong the different offices, better to apply the principle of transparency and accountability rnintherule of law and participating the people in the governance issue.