This paper examines the challenge of achieving a balance between the implementation of centrally designed pro-poor policies and the decentralization of responsibilities to local governments in many African countries. It analyzes the implementation of the Rural Water Supply and Sanitation Program in Tanzania. Key mechanisms for planning and allocating resources are analyzed at ministry, district, and village levels. Results show that a mixture of policy incoherencies, technical shortcomings and political influence determine that only a small proportion of funds reaches the underserved areas. We argue that a greater connection between the bottom-up and top-down planning mechanisms, and a sharp increase of downwards accountability are needed before decentral- ized decision-making result in better resources allocation. Meanwhile a bigger intervention from central government is needed.

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