This article explores the main traits of the decentralization process in Colombia focusing on the municipal level. The Colombian municipalities have been the major beneficiaries of this reform process, which culminated with the 1991 Constitution. This decentralization process, which has been constantly evolving over the last thirty years, has been characterized by a strong focus on fiscal federalism and has neglected the development of local administrative capacities. As a result, the municipalities have gained significant relevance in the Colombian governance system, but they continue to be under a constant threat of capture and politicization of the administration.