This study evaluates the impact of the block grant program implemented in Blitar City since 2002. A community block grant program allocates a portion of the city government's budget for small projects that are disbursed directly to communities. The program was designed to increase public participation and self-management at the local level, as well as to serve as a vehicle for local officials and communities to exercise their autonomy. The block grant program initially addressed communities' immediate needs, mostly for small-scale infrastructure improvements. In the longer term, this program has the potential to empower communities to participate systematically in both the design and implementation of more effective development programs.