The governance of regional development policy is distinctive. It engages multiple actors, across many sectors and at different levels of government - each with varying levels of information and capabilities. Effective governance requires a flexible mechanism for meeting information needs and promoting performance. This report looks at one tool for doing so - the use of indicator systems. It examines both the challenges and the opportunities associated with designing and using indicator systems in the context of multi-level governance. It draws on the experiences of a number of OECD countries and provides an in-depth look at the cases of Italy, the United Kingdom (England), the United States and the European Union. It builds on previous OECD work on the governance of regional development policy by extending lessons about contractual relations among levels of government to performance indicator systems. This report should be of interest to stakeholders- from ministers to mayors - seeking to enhance the efficiency and effectiveness of public spending and to strengthen mechanisms for effective multi-level governance.