After Malawi adopted a multiparty system of governance in 1994, the country went about setting institutional frameworks that would promote good governance and democratic principles. Among other things these were to create strong local institutions that would promote local development participation and accountability and enhance delivery of services. . However, the transformation of the local assemblies posed a very serious challenge to manage. It is not surprising therefore that more than 10 years after initiating the changes, several studies have concluded that the decentralization process in Malawi is hugely disappointing. The situation in most local assemblies has almost reached the crisis point and is seemingly unredeemable. Despite this chaotic and complex scenario, the decentralized local assemblies still continue to deliver their services to the public, though with some reservation. This article utilizes the Chaos and Complexity theory in order to explain why the decentralized sector still manages to survive and show resilience despite the great challenges it encounters. Ultimately, through chaos and complexity theories, the article provides the framework for understanding the change management process in the assemblies which has not been explored adequately in previous studies. The article recommends that when introducing interventions in transitional systems such as decentralization programs, special recognition should be given to emerging dynamic and evolving occurrences that are beyond the control of policy makers.