According to the World Bank, good governance shows sound public sector management, accountability, transparency and provide effective and efficient services to the general public in the given locality. Ethiopia on her part is beginning to begin implementing the elements of good governance.In spite of the endeavors' made by the government. however, the process of fostering good governance practices at the lower tiers of government has still facing various bottle necks such as capacity and the dominance of local government institutions by the ruling party. The findings of the study conducted in the city Administration of Mekelle shows that there is lack of accessibility of information, limited Capacity (competence) of the offices and human power, discrimination, corruption and rent seeking behavior from the bureaucrats, delay of decisions, material and human resource, low level of skill and knowledge, lack of openness and low satisfaction from the constituents', dishonesty, low level of motivation and commitment irresponsiveness are considered the main hindrances' of good governance in the city administration in general and the selected public institutions in particular.