Amends the Constitution to provide for Kampala as the capital city of Uganda. Provides for the districts of Uganda. Provide that subject to the existence of regional governments the system of local government in Uganda shall be based on a district as a unit. Provides for the creation of regional governments as the highest political authority in the region with political, legislative, executive, administrative and cultural functions in the region and to provide for the composition and functions of the regional governments. Provides for regional assemblies for each regional government. Provides for grants for districts not forming regional governments. Replaces the Fifth Schedule to provide for details relating to regional governments. Amends article 189 to recognize the functions and services of regional governments.