<p>Research works that critically examine flood disaster governance at the local level of developing nations are limited. Taking the case of Tinau river, a flood prone basin in Nepal, this study aims at (i) reviewing the prevailing disaster policies in the local level; and (ii) exploring strength and weakness of flood disaster governance. The study integrates literature review with key informant interviews (<i>n</i> = 33 across six local governments) to conduct a SWOT analysis. Our findings show that there has been progress in formulation disaster risk reduction policies in the local level. But the municipalities of the study area (<i>n</i> = 6) have lagged behind in formulating major legislations and institutions such as Disaster Preparedness and Response Plan (DPRP). Moreover, new governance system and ambiguity of responsibilities of institutions have limited the effective implementation of the policies. The ground level data reveals that constrained resources, minimal inclusiveness, lack of awareness among the stakeholders and lack of hydro-metrological stations stand as key challenges. There is significant prospect in enhancing the flood disaster governance by better orienting the local elected representatives with their duties and establishing robust collaboration among different stakeholders. This research work is useful for minimizing the impacts of flood and can be replicated in similar basins of other countries.</p>