Local government has been acknowledged as an important tier of development initiatives in many countries. Furthermore, it is considered highly important as many countries emphasize the role of local government in their legal and institutional framework regarding economic and social development at the local level. The local development of all sectors within a country appears unattainable without the active involvement of its local population. This chapter explores the obstacles identified by the authors through primary data sources and a review of the literature concerning local resource mobilization challenges in Bangladesh.