Abstract
This study takes Iwamura district as a case study area to examine how the traditional governancesystems of local organizations such as neighborhood associations and local government interventions influence theestablishment and functions of a new governing institution, the Machidzukuri council. This council was established as a coalition of existing community organizations, which inherited the existing organizational decision-making process. In particular, after the establishment of the council, the government of Ena continued to subsidize community organizations even after being subordinated by the council, which seemed to maintain the traditional governing structure instead of helping the council embrace the roles played by those traditional organizations. In order to improve the situation, we contend that the council should build a shared vision by listening to the voices of community organizations so that they can be effectively coordinated under the new institution. The government of Ena should also be careful when subsidizing community o rganizations in order to avoidimpeding the effective functioning of the council.
