Ethiopia has been implementing a local-level decentralization program beginning from the early 2000s with an eye to mainly empowering rural local government so that it can be efficient in terms of delivering basic services. While it has significantly contributed to enhancing basic service provisions, the decentralized system was constrained, among others, by two major challenges. The first was the arbitrary and often politically motivated splitting of woredas (the most important rural local government units in Ethiopia which are the equivalent of districts or municipalities in other systems). While it was necessary to create smaller and more efficient woredas, considering the territorial size of the country, the splitting of woredas was however introduced in a context where there was no legal framework for it. The second challenge was the absence of forums for woreda-to-woreda cooperation within a state and across a state boundary. This was despite the fact that the efficient provision of certain services, such as primary healthcare, education, and the like, required such cooperation.