The concept of good governance seeks to establish a representative, accountable, transparent and participatory system of institutions and procedures for public decision-making. This necessitates devolution of authority and responsibility to the local level with the purpose to improve governance and ease the burden on the federal or provincial authorities. The Local Government Ordinance 2001 devolved certain powers and responsibilities to the lower tiers of government. Several evaluative studies reported Pakistan’s devolution experience a success but findings and recommendations of such studies were ignored altogether and Punjab Local Government Act 2013 (PLGA 2013) was passed on 21 August 2015 which struck down the LGO 2001. Based on the existing literature on the subject plus material gained from informal verbal intercourse with local councilors belonging to four districts of Rawalpindi Division, this study argues that the Punjab Local Government Act 2013 is an unjustified annulment of the LGO 2001. Three reasons have been elaborated. First, a number of studies conducted on the functioning of the LGO 2001 in Pakistan during 2001-2008 indicated improvement in social service delivery. Secondly, where some studies are critical of the functioning of the LGO 2001, their criticism is constructive; they find space for criticism because robust relevant provisions of the LGO 2001 had not been implemented in the first place. Thirdly, and most importantly, the provisions of the PLGA 2013 have minimized the participation of people in decision-making. Instead, it has reintroduced bureaucratic supervision, minimizing the desirable features of good governance in local affairs.