1. There is two or more level of govt
 2. Each tier has its own jurisdiction
 3. Any change in the fundamental provisions of the constitution requires consent of both levels of the govt
 4. Sources of revenue for each level are specified

A three tier democracies were introduced in 1992.
 A step was taken towards creating rural local self govt.
 1) Regular elections to be held for panchayat
 2) Seats reserved for SC’s and STs OBCs
 3) One third seats reserved for women
 4) State govt to share power and revenue with local bodies.