Political Economy Analysis of Local Legislature in Nepal’ analyzes the political economy of local legislative practices, and the issues and challenges local governments face while assuming state functions mandated by the Constitution in Nepal. By focusing on legislative autonomy, the study reveals the practices of local governments to draft legislations along with capacity gaps and other issues and challenges they face. The study is another useful resource for all three spheres of governments to identify opportunities to improve inter-governmental relationship, functionality and strengthen sub-national governments.