Municipal Reforms Cell (MRC) was created in 2005 under the Directorate of Municipal Administration, GoK, exclusively for implementation of computerization and other reforms in all the Urban Local Bodies(ULBs) of Karnataka. These reforms are being implemented in selected 49 ULBs of Karnataka under Asian Development Bank funded "Nirmala Nagar Project" and in the remaining 164 ULBs under World Bank funded "Karnataka Municipal Reforms Project". The Municipal Reforms Cell is headed by Joint Director who is of Senior Scale KAS Cadre.

Municipal Reforms Cell co-ordinates with the project partners, namely e-Governments Foundation (Application support organization), Survey Of India(Technical Advice Support Agency in GIS implementation),Karnataka Urban Infrastructure Development Finance Corporation(Funding Agency) and Software Technology Parks Of India,Bangalore (for O & M of Data Center ).

A state level Municipal Data Center is established within the Municipal Reforms Cell and a centralized database of all the ULBs are being maintained from it.The entire process of rolling out of Muncipal Applications of ULBs is handled by the IT professionals of Muncipal Reforms Cell, duly appointed by the Department, directly from the market.Municipal Reforms Cell hand holds the ULBs in implementation of computerization reforms and further maintenance of the same and the task of capacity building and training to Municipal staff is also vested with the Cell,itself.