When the District Level Decentralization Programme was launched by Ethiopia’s federal government in 2001, the role of local governments became crucial, their mandate broadened, and the practice of splitting them increased dramatically. This article examines the splitting of local government in Amhara National Regional State. On the strength of a review of literature on the institutional features of local government and data collected through document analysis and interviews, the article considers the basis of and reasons for splitting local governments in this regional state, the mechanisms for popular participation in this regard, and the question of whether decisions to split local government serve the interests of the people. Various criteria exist and provide considerable flexibility in the creation of new local governments. Regional state legislation does not offer clearly defined guidelines as to how to judge the appropriateness of the splitting practices, and, moreover, demands for splitting localities are elite-driven and involve public participation with pre-determined outcomes. This situation presents challenges for the service delivery responsibilities of local governments and infringes their autonomy. It is thus possible to argue that local government boundaries are imposed with limited local public participation and in the service of local elites’ interests and the administrative decisions of regional executives.