The passing of the 73rd and 74th Amendment to the Indian Constitution on 24th April 1993 is considered a landmark in the history of participatory democracy and conferred much needed powers to Local Self Governance Institutions (LSGIs).Tourism is usually presented as a growth engine for economic and social development. Unfortunately, tourism development provides offers many examples of marginalisation of local community needs and aspirations and the overriding of rights of local bodies. Tourism establishments use many resources that fall under the jurisdiction of the Local Self Governance Institutions (LSGIs).. Hence, it is necessary that these establishments take prior permission and consent from these institutions before initiating projects This publication analyses these Constitutional provisions in relation to the development of tourism. It is divided into three sections that look into; the contribution of the tourism industry to the Indian economy, history of local self governance and related legislations, and how tourism policy, development and trade agreements like General Agreement on Trade in Services (GATS) negates the powers conferred to LSGIs. Publisher: Equitable Tourism Options (EQUATIONS) Contact: [email protected], +91.80.25457607 Visit: www.equitabletourism.org, http://www.equitabletourism.org/stage/readfull.php?AID=794