This chapter presents an in-depth analysis of the institutional and policy framework guiding urban service delivery in Bangladesh. It focuses on the role of city corporations in managing essential services, infrastructure, public health, and regulatory functions. Despite their responsibilities, these institutions struggle with financial limitations, bureaucratic delays, and political interference. The chapter reviews the decentralization process, examining both fiscal and political aspects. Although decentralization aims to empower local governments, its impact is restricted by low revenue-generation capacity, central dependency, and weak institutional strength. Key legal instruments, including the Local Government (Paurashava) Act, 2009, and the National Urban Sector Policy (NUSP), 2014, are evaluated for their role in promoting effective governance. Financial management issues such as poor revenue collection and resource misallocation are also discussed. A comparative review of the Urban Management Policy, 2018, reveals persistent governance gaps. The chapter concludes with policy reform recommendations focusing on fiscal autonomy, accountability, and improved urban planning.