Decentralisation became a reality in rural Mali in 1999, when years of political negotiation, work designing and formulating a legal and institutional framework and nationwide preparation culminated in municipal elections across the country. This institutional reform will still be in its early stages when the municipal councils complete their first term in 2004, having helped implement a process of rural decentralisation that has enormous potential for Mali and the entire sub-region.This paper documents and analyses the evolution of rural decentralisation since its inception in 1999. Through the experience of two rural municipalities in southern Mali, it assesses the ways in which pre-existing local dynamics influenced the creation of municipalities, the election and founding of municipal councils, and their capacity to act. After outlining the research methodology, this paper gives an overview of decentralisation in Mali, and a description of the two municipalities studied and the inauguration of their municipal councils. It then assesses how the municipalities’ origins and social capital have affected their internal dynamics and achievements, and concludes by considering the ways in which decentralisation can be made to work for the benefit of rural people.