LGU stands for Local Government Unit. It is a political subdivision of the Republic of the Philippines at the provincial, city, municipal, or Barangay level. In the Philippines, local government is divided into three levels: provinces and independent cities, component cities and municipalities, and barangays, all of which are collectively known as local government units. The LGU provides funds (federal, state and local) for community needs in the areas of developmental disabilities, substance abuse, and other community needs.