Abstract:Political economists have long debated the relationship between decentralization and conflict. There has been little discussion, however, about two key aspects of decentralization: first, to which levels of local government power should be decentralized, and second, on what basis new decentralized districts should be created. In order to understand the relationship between these two aspects of decentralization and conflict I investigate here the case of Uganda, where President Yoweri Museveni and his National Resistance Movement (NRM) government embarked on a radical decentralization programme upon coming into power in 1986. I argue here that Uganda's decentralization programme, while helping to reduce national-level conflict, has nonetheless replaced it with local-level conflict. This process has taken place in two ways. First, the concentration of local power at the district level has led to struggles over district leadership positions. Second, the huge expansion in the number of new districts has led to local-level conflict by altering relations between local ethnic groups.