Grounds of the Study: Under the logic of capital accumulation process; poverty has been aggravating day by day in the world-wide with deepening problems of the most vulnerable and disadvantaged sections of the society, and nowadays with mostly influencing the urban population. Urban poverty demonstrated itself with %8.86 in Turkey (TUIK, 2009). At the study, urban poverty and urban poverty alleviation have been searched from the socio-economic and political restructuring process from 1980s onwards. Since 1980s, global planet has been under the influence of neo-liberal discourses. New political agenda reflected itself with the policies supporting capital, new order has been settling on decentralization, localization, governance, privatization, elimination of global trade boarders, and alleviation of social security network. In this respect, within the framework of re-scaling and re-structuring of state; state transfers power to global scale (multinational organizations and institutions) and local scale (local administrations).That process leads to change at state's intervention to urban fields and local administrations come to the front side as the pivot actors at combating poverty. Purpose of the Study: That paper's first objective is highlighting the emergence of local administrations at combating poverty within the socio-economic transformation of world order under capitalist formation within the re-scaling of state process. The second target at the research paper is to set forth the aggravating trend on urban poverty, and demonstrating the intersection points with the critical role and responsibilities of local administrations on that framework. Lastly, the current condition of local administrations in Turkey, at poverty alleviation process is analyzed firstly with the evaluation of institutional responsibilities by the previous and newly enacted local laws, secondly budget proportions have been analyzed by the help of 'current transfer expenditures' budget item; finally, technical staff capacity building issue concerns which have a key role at the success of poverty alleviation are evaluated. In that context, relative strengths and weaknesses of local authorities on poverty struggle have discussed, some solution proposals have been given on that dimension. Method: Within the context of the study, literature review has been made concerning poverty and urban poverty; and international institutions reports that highlighting the functions and responsibilities of local administrations at combating poverty and legal framework at national level have been deeply searched. Main Discussion and Conclusions: That study's main assumption has been shaped around that hypothesis, "while at the new political order, decentralization argument let to the attribution of lots of roles and responsibilities to the local administrations, recently, it is seen that local administrations can produce effective poverty alleviation policies only with coordinated and integrated central government upperhand policies; because local administrations cannot take the necessary financial, administrative and human resource power transition that is in harmony and sufficient with their local responsibilities. Consequently, local administrations have no needed financial and technical capacity for being remedy at urban poverty. [ABSTRACT FROM AUTHOR]