Arunachal Pradesh is a relatively late entrant into the framework of decentralized governance in India. The state’s engagement with modern political institutions, ideologies, and administrative mechanisms has evolved gradually in the post-independence period. Consequently, understanding the development of urban local government in Arunachal Pradesh requires a nuanced and context-specific analysis, as its road differs significantly from that of other Indian states with longer traditions of municipal governance. Urban local government in India serves as a crucial institutional framework for managing urban infrastructure, sanitation, public health, and essential civic services. In Arunachal Pradesh, this framework assumes added importance due to the state’s distinct socio-political composition, difficult geographical terrain, and transitional stage of urbanization. As an emerging state in the North-Eastern region, it faces unique administrative challenges in strengthening urban governance. The growth of urban centres such as Itanagar and Pasighat has increased the need for effective local institutions to manage infrastructure, land use, and public services. The 74th Constitutional Amendment Act, 1992, provides the constitutional basis for urban governance by mandating the establishment of Urban Local Bodies (ULBs) to promote democratic decentralization and local self-governance in areas such as urban planning, sanitation, and public health. This paper examines the evolution, institutional structure, and operational challenges of urban local government in Arunachal Pradesh. It highlights key issues including fiscal constraints, planning deficiencies, administrative limitations, behavioural changes, and the state’s unique geographical conditions, and explores strategies for strengthening ULBs and promoting sustainable and inclusive urban development.