Decentralization has become a favored approach in governance reform globally for several decades. Many developed and developing countries have experimented with decentralization to varying degrees, depending on the types of decentralization used and the political situation in the country. This introductory chapter examines and analyzes the concept and impact of decentralization from a theoretical perspective and ,in practical ways, as implemented in South Asian countries. The context for this chapter is concerned with the governance framework of regional governments and the emergence of counter-intuitive patterns of decentralization in South Asia. This chapter offers a critical assessment of the new trends of decentralization and local governance in South Asia.