Delegation of decision-making authority from Norwegian municipal councils to administration has increased during the past ten years. From the vantage point of the NPM paradigm, delegation is justified on the grounds that it renders decision-making more efficient. However, delegation challenges the democratic link between citizens and elected representatives, as it obscures the question of who may be held to account for decisions made. The challenge is to develop a system that not only permits public agencies to produce better results but also ensures accountability to citizens. With this challenge in mind, we examine delegation practices in Norwegian municipalities and the extent to which municipalities develop mechanisms of extended accountability. We also study the relationship between delegation practice and politicians’ perceptions of accountability, transparency and efficiency. Preliminary results indicate that municipalities increasingly rely on participatory measures rather than political accountability in the quest for democratic legitimacy.