This article considers some of the problems facing the Cambodian government following the UN‐backed elections. It outlines the system of government at national and local level, focusing on Battambang province and district. It considers the current debate there about centralization and decentralization, and examines the problems of finance at national and local levels. The case study on water supplies in Battambang town contrasts the public provision through the provincial water enterprise with private sector and community/NGO provision.