Abstract: The restructure of local government in the Northern Territory was carried out in less than two years, from announcement in October 2006 to implementation on 1 July 2008, with elections for the shire councils on 25 October 2008. The primary feature of the restructure was the amalgamation of nearly 60 Aboriginal community councils of small communities into eight shire councils. The restructure occurred at the same time as a study of service delivery to Aboriginal communities was being undertaken and, further, was overlaid from July 2007 by the Northern Territory Emergency Response (the ‘Intervention’). This paper explores the transition process as it occurred in the Barkly region of the NT, and the governance issues that emerged that may have a long-term impact on service delivery to the communities of the Barkly.