The paper analyzes factors that impede inter- and intra-organizational coordination in urban governance in policy implementation. The unit of analysis is the Rajshahi City Corporation, one of six large municipalities in Bangladesh. Inadequate institutional rules and regulations, ambiguous system for financial management and shady practices create a large degree of discontent amongst officials and impede both inter-organizational and intra-organizational coordination in implementing urban infrastructure policy. In addition, central-local relations, different modes of operation and patterns of accountability act as barriers to sound working relationships between the city corporation and other government departments and autonomous agencies operating within the jurisdiction of the city corporation.