Network coding has been as a new coding paradigm that can significantly improve the throughput performance of a wireless multi-hop network. However, most previous studies either assume a fixed transmission power or do not take the impact of transmission power/rate to the network coding into consideration. Since in many scenarios, the selection of the transmission power/rate has big impact on network coding gains due to the fact the reception and overhearing probability, spatial reuse are both rely on transmission power/rate. Therefore, how to achieve high network throughput by appropriate selection of transmit power level and its corresponding packet transmit rate, network coding gain (if any) via localized network operations has been a critical issue in distributed multihop wireless networks, or alternatively, what is the best trade-off between the space-time resource (level of spatial reuse and transmission time) and the network coding gain? In this paper, our goal is to achieve the best trade-off between transmission power/rate and coding gains. Aiming at this, we propose a decentralized network coding aware power and rate control mechanism to enable each node to adjust its transmit power and data rate such that the network coding gains and the network throughput is maximized. Simulation results show that the proposed mechanism yields higher performance in network throughput as compared with existing work.