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E-Governance needs to transform all levels of Government. Still, the focus should be on local governments since local governments are the closest to citizens and constitute, for many, the primary interface with Government. The relationship of citizens and local authorities tends to be one based on proximity as the interests at stake for both parties are closely entwined concerning issues such as public services, regional development, education, etc. e-Governance based administrative reforms in local governments can have maximum impact on citizens.