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With view to current federalism debates in the country, the study looks at informal local governance in rural Myanmar and analyses how they compare to a so-called third tier government in federal government structures. It is the first report that gives an insight into the question of how communities manage their own affairs if the state cannot step in, what the tasks are that being managed, who the actors are that provide public services and how these actors interact with state entities - or not. Ultimately, the research might serve as a basis for future decentralization efforts in Myanmar.