The Ministry is responsible for coordinating the activities of the decentralization processes and the local government bodies. The Local Government Department of the Ministry is more permanent, but often times other departments are attached and detached in Ministerial realignments.

The Ministry of Local Government and Rural Development exists to promote the establishment and development of a vibrant and well resourced decentralized system of local government for the people of Ghana to ensure good governance and balanced rural based development.
This will be done by:
Formulating, implementing, monitoring, evaluating and coordinating reform policies and programs to democratize governance and decentralize the machinery of government.
Reforming and energizing local governments to serve effectively as institutions for mobilizing and harnessing local resources for local national administration and development.
Facilitating the development of all human settlements through community and popular participation and promoting orderly human settlement development
Facilitating the promotion of a clean and healthy environment.
Facilitating horticultural development.
Improving the demographic database for development planning and management.

The Ministry currently has a representative on the WASH-UP Steering Committee.