The Delhi Human Development Report of 2006 discusses the human development status of the city, with focus on several domains such as poverty, livelihoods, health, education and infrastructure. In addition to highlighting inequities, this Report brings in an innovative element of people’s perception of the city-state which has been recorded as ‘mixed’ overall. While improved access to health, education, employment and improved road conditions are the main positive attributes noted by residents, negative attributes include water shortages, power outages, collapse of public health provisioning, poor garbage disposal and sanitation. The Report also provides an overview of the governance challenges that beset this city-state, the national capital of the country, suggesting that an institutional solution to overlapping functions and jurisdictions of different government departments is of utmost importance. The Bhagidari scheme’s contribution towards improving governance through the collaboration of the Government of Delhi and its residents has been described. Factors considered critical to progress include better planning of land use, augmenting urban infrastructure especially by tackling the water and power crises, addressing safety concerns especially for women, strengthening public vigilance and partnership.