Good governance is very essential in ensuring effective utilization of community resources in meeting the needs and aspirations of the people.  It is therefore not surprising that, institutional and administrative issues have been and continue to be the major cause of plan shelving and failures in Ghana. Effective and efficient government machinery is an important pre-requisite for economic, social and cultural development of any society.

Therefore good governance is belief to thrive on the following:
i)   Effective state machinery;
ii)  Mobilised Civil Societies, Organisations and
iii) Efficient and vibrant Private Sector

There is also a wide consensus that the key elements of good governance include accountability, transparency, combating corruption, participatory governance and an enabling legal/judicial framework.  These elements of good governance highlight the complex nature of the concept.  Good governance covers two distinct but closely related dimensions:  one is political and relates to the degree of genuine commitment to the achievement of good governance; the other is technical, and relates to issues of efficiency and public management.  Both must be addressed to create a truly enabling environment where private operations can flourish and poverty can be reduced.

The Dormaa Central Municipal Assembly was established in 1988 by LI 1476 under the Local Government Law 1988 (PNDC Law 207).  The Assembly is empowered as the highest political and administrative authority in the Municipality, and charged with the responsibility of facilitating the implementation of broad national policies.  Under Section 10 of the Local Government Act 1993 (Act 462), the Assembly exercises deliberative, legislative and executive functions in the district.

The Assembly is enjoined by the act to facilitate the overall development of the Municipality by way of the preparation and implementation of the Municipal development plan and its related budget.  The Assembly is also to implement, monitor and evaluate programmes, strategies and projects aimed at enhancing effective and efficient mobilization of human, physical and capital resources for development.