Abstract
Differentiation can be seen as a tool to try to focus the support from
national and provincial government and associated institutions to local
government toward ensuring functional, performing municipalities
that deliver their services adequately. This article aims to explore what
the current policy debate on differentiation entails and to fi nd out why
differentiation may be necessary or not. The article pays attention
to differentiation as contained in legislation, concepts relevant to
differentiation in local government in terms of segmentation and support
models, powers and functions, fi nancial resources, the urban-rural divide
and institutional systems. The article fi nally provides a proposed approach
towards differentiation in local government.