A dual governance system, also known as dyarchy, is a system of administration where government functions are divided into two distinct categories, which are administered by two different sets of authorities.
The most famous historical example of this system in the Indian context was introduced by the Government of India Act of 1919 in the provinces.
\[\begin{array}{rl} \bullet & \text{Division of Subjects: Under this system, the subjects of provincial administration were divided into two lists:} \\ \bullet & \text{Reserved Subjects: These were the more important subjects like finance, law and order, and irrigation. They were administered by the Governor and his Executive Council, who were not responsible to the provincial legislature.} \\ \bullet & \text{Transferred Subjects: These were subjects of lesser importance like education, health, and local government. They were administered by the Governor acting with Indian ministers who were responsible to the provincial legislature.} \\ \bullet & \text{Purpose and Flaw: The system was intended to be a step towards responsible government, but it was fundamentally flawed. The ministers had responsibility but lacked financial power (as finance was a reserved subject), making the system unworkable and unpopular. It was eventually abolished by the Government of India Act of 1935.} \\ \end{array}\]