Canada is a democracy, a constitutional monarchy. Every act of government is done in the name of the Queen, but the authority for every act flows from the Canadian people. This booklet examines this system of government and how it operates. The first section deals with the origins and operation of the parliamentary government. The second section discusses the Canadian Constitution and the powers of the national and provincial governments. The third section explains the rule of law and the courts. The institutions of the federal government are covered in the fourth section. The final section looks at the role of provincial legislatures and municipal governments. Two appendices list the governors general of Canada since Confederation and Canadian prime ministers since 1867. (JB)