After years of implementation of the new decentralised planning system in Ghana, problems of plan implementation still persist. This paper uses a case study approach to appraise the capacity of the Asante Akyem South District Assembly (AASDA) in managing the implementation of its development plans. Using questionnaires and Organisational Capacity Assessment Tool (OCAT), the paper examines the capacity of the district assembly to implement its plans in six areas. The extent of implementation of a medium term development plan (2002-2005) was also reviewed. Finally the paper draws on the capacity situation of the district assembly and concludes that the assembly requires capacity upgrading to leverage its full potential in grassroots development.