This study examines the pivotal role of Monitoring and Evaluation (M&E) systems in promoting good governance and improving performance within local government institutions in South Africa. Although several policy reforms have been introduced to strengthen oversight and accountability, many municipalities continue to experience governance challenges, including weak accountability structures and fragmented performance management systems. Anchored in the Theory of Change (ToC) and the Government-Wide Monitoring and Evaluation System (GWMES), the study adopts a quantitative research design to assess the structure, coverage, and effectiveness of M&E practices across five municipalities in the North West Province. The findings reveal that while M&E systems are widely acknowledged as indispensable instruments for good governance, their practical implementation is constrained by inadequate institutional capacity, poor data management systems, and limited community participation. Furthermore, the absence of integrated feedback mechanisms undermines transparency and responsiveness in municipal administration. The study underscores the importance of institutionalising a consolidated and participatory M&E framework embedded within governance structures such as Ward Committees, Municipal Public Accounts Committees (MPACs), and Internal Audit Units. Strengthening stakeholder engagement and aligning M&E processes with performance management systems can enhance accountability, build public trust, and improve sustainable service delivery outcomes. This paper contributes empirical insights and policy recommendations aimed at advancing democratic governance through the effective institutionalisation of M&E systems in local government.