A historical overview and analysis of the decentralization process in Victoria, Australia, is the purpose of this paper. The case study illustrates the impact of conflict between political and administrative agendas on attempts to implement the government-initiated policy decision. The current two-tiered system is composed of central and local district administrative levels with clearly defined roles and responsibilities. The modification of the decentralization implementation process illustrates the importance of creating public awareness and involvement for successful policy implementation. (LMI)