The present study deals with designing a network governance model in Tehran municipality. This research is developmental in terms of purpose and descriptive-exploratory in terms of method. Interview tools were used to collect qualitative data. Participants in this study are managers and authorities of Tehran municipality, contractors and faculty members of universities with a history of working in the municipality. In order to design a network governance model in Tehran municipality, data-based theorization with Strauss and Corbin’ s approach has been used. According to the results of open and pivotal coding, the causal factors influencing network governance include the culture of participation, political powers, upstream laws, and popular organizations. In addition, effective contextual factors on network governance include cultural infrastructure, legal infrastructure, trust building, government support, behavioral training, team capacity, and networking infrastructure. Interfering factors include management barriers, cultural and social barriers, and organizational barriers, strategic and legal dilemmas. Network governance strategies include developing information channels and environmental scanning, strengthening research and development infrastructures, developing collaborative networks for evaluating and selecting projects, outsourcing and developing citizen participation in decision making. The implications of network governance include economic efficiency, strategic development of urban services, and organizational effectiveness.