Local governance, as a key framework for local management and development, plays a fundamental role in improving the quality of life and livability of human communities. This study aimed to analyze the effect of local governance on the livability of rural settlements in Mahur Milati District, Mamasani County, during the Iranian year 1404 (2025–2026). In terms of purpose, the study was applied, and in terms of nature and method, it was descriptive–analytical and survey-based. The statistical population consisted of residents of 32 selected villages in Mahur Milati District. A multistage sampling method was employed: first, the villages were purposively selected based on population, geographical location, and spatial distribution; the sample was then allocated proportionally to each village’s population, and respondents were randomly selected within the villages. Based on Cochran’s formula, an initial sample size of 341 respondents was calculated, which was subsequently increased to 387 to improve accuracy and ensure adequate representation of low-population villages. Data were collected using a researcher-developed questionnaire. Its validity was confirmed through expert judgment, while its reliability was verified using Cronbach’s alpha coefficients of 0.916 for local governance and 0.896 for livability. The data were analyzed using the one-sample t-test, Pearson’s correlation coefficient, and multiple regression analysis. The results indicated that the mean scores of local governance (2.80) and livability (2.54) were below the desirable level of 3, reflecting unfavorable conditions in both variables. Pearson’s correlation analysis also revealed a moderate correlation between local governance and rural livability. Moreover, multiple regression analysis showed that the rule of law (β = 0.320), responsiveness (β = 0.290), accountability (β = 0.275), and efficiency (β = 0.260) had the greatest effects on livability, respectively. Accordingly, strengthening participation, consensus orientation, equity, and transparency can enhance social capital, improve local management processes, and ultimately increase the livability of rural settlements.