The LSGD is a department with a difference. Unlike other departments, its main roles are that of facilitator, enabler and gatekeeper. It facilitates and enables local governments to fulfil their constitutional responsibilities. It supports local governments in the implementation of centrally sponsored schemes and in developing local models for sustainable growth. It also has a responsibility to ensure that the regulatory obligations of the local governments are undertaken efficiently and to provide policy direction for local governance. 

One of the department’s fundamental functions is to oversee and support Local Self Government Institutions, which include panchayats, municipalities, and city corporations. The department plays a critical role in guiding and supervising these local governments, as well as providing the policy framework for their functioning. 

There are supporting missions like the Kudumbashree Mission which has been responsible for the mass mobilisation of women and their enhanced participation at the local level, the Information Kerala Mission which has provided the digital backbone to local governance in Kerala and the LIFE Mission for housing. KILA is the capacity development organ for local governance. The Suchitwa Mission coordinates waste and sanitation initiatives. The State Finance Commission and the State Election Commission are statutory entities arising out of the Constitutional mandate. The State has also created the institution of the Ombudsman and the LSG Tribunal to ensure responsible governance by the elected local governments.