For the last two decades many developing countries have adopted decentralization so as to improve service delivery.Fiscal decentralization is one of the dimension of decentralization which give power to local governments to mobilize their revenue sources. But urban government's revenue generating capacity is too weak but their expenditure assignment responsibility is too high. As a result, local governments capacity in providing service to the resident is limited. Accordingly, some of the questions which raised in this book include but not limited in the following,Is the revenue collected by the municipality adequate enough to cover the expenditure responsibilities of the service?, To what extent the municipality is authorized to mobilize revenues?, What are the main constraints of the municipality to provide service to the residents? This book examined fiscal decentralization and service delivery the case of Ethiopia. This book would help for college and university students, professionals and policy makers in the area.