This essay analyzes the Canadian government's recent efforts to reform the federal Indian Act, a colonial-era statute regulating First Nations life on reserve. The First Nations Governance Initiative suggests that the federal government is still having difficulty coming to terms with the contemporary policy framework in which First Nations - federal government relations operate. The paper looks at Indian Act reform from a historical perspective and explains the impact of more recent developments including the Corbiere decision. The Department of Indian Affairs' efforts to consult with First Nations in the Governance Initiative are explored, as are the effects federal efforts have had on First Nations organizations and the positive development represented by the "Joint Ministerial Advisory Committee" approach to Aboriginal policy-making. The substance of current Indian Act reform proposals is also assessed. Although the author argues that modernizing band governance under the Indian Act as an interim capacity-building measure is an idea with some merit, he concludes that the shortcomings found in Bill C-7 call into question the legality and morality of proceeding with the current proposal.