The district municipality is a government institution committed to working with citizens and groups within the community to find sustainable ways of meeting their social, economic and material needs and improving the quality of their lives. Local Governments are clearly one of the nation’s fundamental democratic institutions. Inclusive and effective democratic processes can most readily be achieved at the local level through participatory, transparent, management of public resources and joint community development projects. In South Africa, local governments are responsible for stimulating local economic development and for providing people with basic services. The basic services include water, electricity, sanitation, affordable housing and basic health care. In terms of the Constitution of Republic of South Africa, 1996 and various acts flowing from it, the District Municipality is required to structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community, to promote the social and economic development of the community and to participate in national and provincial development programmes. The municipality to this end must provide vision and leadership for all those who have a role to play in the development of the municipality.