This study describes the performances and constraints of public service delivery inrnDigelu & Tijo woreda of Arsi Zone in Oromia Region. It assesses the performance inrneducation, health, water supply, and rural roads sectors of the woreda, and compares thernperformances of these sectors between the periods before and after woredarndecentrali zation. The study argues that properly institutionalized and functioningrninstitution is decisive for efficient and responsive decentralized public service delivery.rnQualitative and quantitative data that informed the study were collected from primary andrnsecondary sources. Planning and performance reports, financial reports and manpowerrnreports from secondary sources and interviews with representatives of se lected publicrnservice institutions and community members were among the major sources of data. Thernfindings of the study indicated the existence of better performance in ed ucation and ruralrnroads sectors under the decentralization scheme. Minor differences have been observed inrnthe health sector while there was no change in the performance of the water supply.rnOverall performance was found to be low, which makes it difficult to conclude that therernis significant change contrary to the expectations hoped to be realized afterrndecentralization. This is because of constraints in financial and human resources andrnweaknesses in coordination and participation characterizing different actors in thernworeda. Low revenue generating capacity increased dependence on regional block grantsrnthereby limiting financial resources available for public service delivery. Scarcity ofrnmanpower inhibited delivery of public services particularly in the front line offices. Lackrnof proper coordination and participation hindered proper identification of local needs andrnresulted in lack of fairness in budget allocation for providing different public services.rnPriority setting has been dominated by sector offices and cabinet decisions, whichrnrestricted utilization of local potentials in terms of participation and affected thernefficiency and responsiveness of the study woreda. This confirms that availability ofrnfinancial and human resources and smooth relations among different actors in terms ofrncoordination and participation are crucial in public service delivery. The study alsornindicated that the decentralization scheme is not yet adequately supported by necessaryrninstitutional prerequisites. Decentralization increases the efficiency and responsiveness ofrnpublic service providing agencies under properly institutionalized and functioningrnsystem