The double-edged sword of Jomtien (1990), which emphasized access to education, and of Dakar (2000), which placed additional emphasis on the quality of education, the Holy Grail, provides the context for the expansion of education in developing countries. One of the most frequently espoused ingredients for success is good governance. The cornerstone of the discussion raised in this article is a small-scale qualitative case study, which investigates the impact of local governance, i.e. community organizations, on community schools in rural Punjab, Pakistan. The research asks: What are the factors which community organizations contribute to teachers' motivation? What is the impact on teachers' performance and what are the implications for the quality of teaching? The resulting discussion explores the extent to which community organizations may support teachers better than the more centralized government system, whilst also reflecting on their limitations. Evidence is presented to support the view that local governance may enhance monitoring and accountability systems, and the ethos of schools, but that without the resources to deliver adequate levels of training and follow up, it can deliver very little significant improvement to the quality of teaching.