Private or public organizations are formed from principle of agency theory. Agency theory explains the problems that inevitably occur in organization, where there is a difference interest between agent and principal. This study purpose is to examine and demonstrate empirically the effect of principles of transparency, accountability, public participation, justice and accountability principle on local government’s performance. The study problem is Gunung Kidul District is the only district in Yogyakarta who gets WDP opinion for five consecutive years, namely in 2009, 2010, 2011, 2012, and 2013. It shows that government’s performance of Gunung Kidul still fairly weak. Generally, government will good if they productive and show the results with indicators of people’s economic ability to increase productivity and purchasing power. This study uses explanatory method with quantitative approach. Explanatory study examines the provisional estimates (hypothetical). The study object is local government agencies at local government of Gunung Kidul, namely: the Agency and Department. Study subjects are employees of Agency and Department in Gunung Kidul. Study population is 1900 employees of Agency and Department. The samples are 95 respondents. Results showed that principles of transparency, accountability and public participation affect on local governments performance but not significant or can be said to have no effect on performance. Fairness and responsibility has a significant effect on performance of Gunung Kidul Government.