The success of decentralization highly depends upon the improvement of local government’s accountability. Since, there are various forms of accountability according to various contexts, but in respect to decentralization concept, accountability mainly involves with the relationships between the local governments and the central government as well as with their citizens. Since, problems to accountability in decentralization vary with the practiced forms of decentralization, but there are some momentous reasons of creating problems to local government’s accountability (both upward accountability and downward accountability). Though the decentralization process exists in Bangladesh, the accountability issue is a major challenge for urban development in Bangladesh. In this context, this research was an attempt to identify the upward and downward accountability issues associated with urban development. In addition this research identifies whether there are any impacts of organizational arrangement of decentralization on the promotion of accountability issues in urban development practices of Bangladesh.