The relationship between decentralization and corruption has intrigued experts in recent years. Decentralization proponents do not explicitly identify anti-corruption as a goal, but its potential as a tool is attractive to public sector ethicists if the appropriate connection can be shown. This article argues that decentralization of government can foster civic engagement and public-spirited public administration and promote honesty and accountability. Two major strands in the literature are examined: those that associate decentralization with greater corruption, and those that link it with greater public sector accountability. In the end, the proximity between government and people enabled by decentralization gives administrators and citizens a better opportunity to change public service values while reforming the structure of governance.