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This paper presents the explanatory analysis of municipality’s e-governance project in Nepal. Objectives of e-governance projects were to improve administrative processes, connecting citizens and building external integrations. This study attempts to provide deeper insight to e-government landscape at local level in Nepal. Website of each municipality was assessed on its usability, navigability, trust and credibility and its legal policies. The promptness in service delivery was measured by email responsiveness to the user’s questions. E-readiness and Nepal government’s master plan 2006 has also been considered in assessment of local e-governance. The assessment of websites indicated its under-utilization as an e-government tool and a very minimal adoption of e-governance. Result clearly showed lack of transparency, slow service delivery and under estimation of existing websites by government. This study suggests that government need to work seriously and extensively hard to achieve the benefits offered by ICT. This paper has identified some important factors which can improve the success of local government’s website. This study might prove useful for other developing countries with similar initiatives.