TL;DR Local government means panchayats (villages) and municipalities (towns and cities). They look after water, roads, sanitation, street lights, and local development. This doc explains who does what so you can raise issues in the right place.

Panchayats (rural)

Village panchayat, block panchayat, and district panchayat. The gram sabha is a meeting of all voters — you can raise issues there. The sarpanch and panchayat members run day-to-day work. Many State schemes (e.g. MGNREGA, roads, water) are implemented through panchayats.

Municipalities (urban)

Municipality or municipal corporation. Councillors represent wards. The mayor heads the council. They look after water supply, roads, street lights, sanitation, and local planning. Ward committees can involve citizens.

What you can do

• For local issues, contact the panchayat office or ward councillor first.
• Attend gram sabha or ward meetings when you can.
• Use the State or local grievance portal if the issue is not resolved.

Related: Local Governance: Panchayats and Municipalities · Federal Structure: Centre and States