This report contributes to our understanding of the governance of post-devolution Scotland. It is based on extensive research into the impact of the Parliament on local government. It is an assessment of how the roles of the Parliament and the local authorities, and the complex relationship between them, are evolving in the "new Scotland". The research involved interviews with 11 case-study local authorities, with members of the Scottish Executive and Parliament, with trade unions, and others. In addition, surveys of councillors and the members of four professional bodies were carried out. The study reveals the complexity of the relationships between the two tiers of government, and the difficulties in achieving the goal of "joined-up government". It discusses the tensions that exist between the two tiers, and the different forms that these may take for different local government services. The report also confirms that, in local government, there is overwhelming support for the Parliament, together with a belief that governance is improving under devolution.