This study, recommends the imperative need for Zambia to accelerate the full implementation of its national decentralisation programmes with a special focus on fiscal decentralisation. The findings of this study revealed that although Zambia had made headways in implementing administrative decentralisation programmes, it still faced glaring challenges in implementing fiscal decentralisation as a result, development did not cascade to the local community levels. Data collected was thematically analysed. The primary data was complemented by the secondary data from various sources. Semi-structured interviews were conducted with the key informants. Resting on a con-structivist research paradigm, this study employed a qualitative research approach with a sample size of 20 (n=20) key informants that were purposively selected from ten (20) local authorities in Zambia. This paper therefore, aims at assessing the status of the implementation of the national decentralisation programmes in Zambia and evaluating the extent to which decentralisation has served as a vehicle for local economic development. However, implementation of decentralisation policies to facilitate local economic development has not been without challenges. Decentralised government systems are more effective in tackling poverty levels in localities since local authorities are closer to the community members as such, they are more likely to conceive and implement pro-poor policies. Local economic development is about the involvement of all key stakeholders from the local community in resolving the socioeconomic challenges faced in the local areas in order to improve the livelihoods of the local community members. Furthermore, the study proposes to decentralise the management of the Chinyunyu thermal springs, enhance local participation in decision making, provide basic infrastructure and formulate a local economic development policy framework for the municipal council. A sustainable commercial model that could be adopted by the thermal springs was therefore developed. The study proposes to commercialise and develop the Chinyunyu thermal springs into a community-based tourism resort as an ideal local economic development strategy. Evidence from this study revealed a positive and significant association of local community participation in decision making, decentralisation of power and authority, infrastructure, and exploitation of local natural resources to local economic development of the Chinyunyu Village. Results from the study revealed that the Chinyunyu thermal springs have remained underdeveloped and underutilised as such, failed to significantly contribute to the well-being of the community members in Chinyunyu Village. The study concluded that the local authority in Chinyunyu Village has failed to sustainably exploit the exciting heritage and natural resources within its locality, the Chinyunyu thermal springs. Data collected was statistically and thematically analysed. A survey, key informant interviews, and two focus group discussions were conducted to collect data. A sample size of 139 (n=139) individuals was purposively selected from the local authorities and community actors. Resting on the pragmatic, interpretivist, and constructivist research paradigms, this study employed a mixed methods convergent research design triangulated with multiple data sources. The main aim of this study was to explore the use of Chinyunyu thermal springs as an economic input to assist the cause of local economic development. As a result, the locals in Chinyunyu Village have remained unfairly “trapped” in a vicious cycle of high poverty. Of particular interest is the Chinyunyu thermal springs, a critical resource, but under-utilised. A case in point is the thermal springs that are dotted around the country, mostly in rural areas, that have not been fully and sustainably utilised to the benefit of the local communities. However, full optimisation of these resources to the benefit of the local communities that host them remains a challenge. Zambia is rich in natural, environmental, cultural and heritage resources.