IT MAY not be starkly obvious, but the changes in local government over the past 10 years and more are part of one of the most far-reaching and ambitious local government transformation projects anywhere in the world.

Certainly SA's local government transformation is much more protracted, intricate and challenging than the transformation in the other two spheres of government. Many of us believe, moreover, that it will take another 10 to 15 years to effectively implement the new model of local government that has begun to come into effect with the December 2000 elections.

But we have come a long way already. Before 1994 the local government landscape was cluttered with about 1264 racially defined, mainly urban municipalities, with absurd boundaries and huge differences in structures, roles and powers. Initially after 1994, municipalities were simply clustered together, but from 1999 an independent Municipal Demarcation Board drew new boundaries for municipalities in terms of the 1996 Constitution and new legislation. This mammoth task was completed within an astonishing 18 months.

The outcome?

Six metro, 47 district and 231 local municipalities, covering urban and rural areas.

The new demarcation of boundaries is part of a new system of local government. Previously local government was simply a function of provincial government, which delegated powers to it. Now local government has its own original powers and functions enshrined in the constitution. In a way that is unique in the world.

But if local government is independent, it is also interdependent on and interrelated with the provincial and national spheres. Crucially, local government is no longer simply an agency to deliver uncoordinated services, but a crucial site of long-term planning and community development.

Essentially the new model of local government is an integrated cycle of community participation, development planning, budgeting, service delivery and performance management.

That is the idea. But what of the practice?

Obviously there is a gap. A major study of 68 municipalities across the country undertaken by our portfolio committee earlier this year found that while the core principles, values and features of the new local government model are sound, there are major implementation challenges. These revolve mainly around issues of finances, capacity and inter- governmental co-operation.

Clearly there is a need for a new financial system to go with the new developmental model of local government. The Municipal Finance Management Bill and Property Rates Bill before Parliament are aspects of this new system. But there is also a review underway of local government's "equitable share" of national revenue, business levies, capacitybuilding grants, infrastructure transfers, fiscal powers and functions of district and local municipalities respectively, and additional sources of municipal revenue. This review needs to be speeded up.

Much work still needs to be done to clarify the role of district municipalities and the precise division of powers and functions between them and local municipalities. There also needs to be greater co-operation among the three spheres of government.

Basically, municipalities are in the early stages of the final phase in the transformation to a fundamentally new system of local government. Ultimately, progress in implementing the new model will be an important barometer of the success of the post-apartheid, democratic transition.

There is too much at stake not to make it work.

Carrim is an African National Congress MP and chairperson of Parliament's provincial and local government portfolio committee.