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In The Netherlands, national urban regeneration policies are undergoing a radical process of decentralisation. Many major national funds are concentrated in an Investment Budget for Urban Regeneration (IUR) and are decentralised to 30 major cities and the 12 provinces for the smaller municipalities. Establishing the IUR is seen as an important precondition for regeneration policies in the Dutch context. The paper discusses the capacity of local government to be the central government agent for the urban regeneration policies being promoted by the IUR. Decentralising urban regeneration policies involves more than decentralising the budget. The domain of local government must have sufficient capacity to engage in the policies decentralised by national government.
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