Arguing that policy makers must urgently focus on reviving India"s small towns and big villages, this record examines the country8217;s kaleidoscope of municipal finance issues. Based on a detailed study of more than 30 urban centers, this analysis calls for a radical change in the constitution and operation of these municipalities, with effective devolution of funds, functions, and functionaries from the state level. It contends that municipal bodies need to function independently and with real participation of citizens in order for a new and successful urban India to emerge.