In post-1980 period, specifically since mid-1990s, local governance in Turkey has been politically more significant and structurally more complex than before. On the one hand, cities like Istanbul have become nodal points of global economy due to Turkey’s shift from import-substitution industrialization to export-oriented growth. On the other hand, the local government reforms in 1984 and later on in 2004 delegated considerable decision-making powers, resources and responsibilities to local governments. Amidst these structural changes, multiple layers of governance and multiple actors have emerged and partook in the production and application of local governance discourses and practices. This paper focuses on one of the actors of local governance, the municipalities, and their role in interpreting norms of “good governance” and in their application of such norms into municipal policies and practices. The paper is based on the case study of Istanbul. Field research, and in-depth interviews with mayors, municipal councilors and bureaucrats in Istanbul municipalities (both metropolitan and district levels) took place in 2011 and 2012. Qualitative analysis of the field data suggests that municipal authorities in Istanbul consciously and systematically choose to conceptualize and envision the institution of municipality as a firm. The author argues that municipal authorities view “seeing like a firm” as an indispensable requirement in the governance of the metropolis. Accordingly, norms like competitiveness and effectiveness took precedence over norms such as participation and accountability. The author concludes that this hierarchy among norms of governance has serious implications for municipal policies and practices as well as for the democratizing prospects of local governments.