ESTYN has given an encouraging report to Monmouthshire County Council (MCC) after its third visit to the authority.
The authority was placed into special measures in 2012 by Estyn after they deemed the quality of its education services 'unsatisfactory'.
In the third visit to the MCC, Estyn looked at the authority's performance management.
Clive Phillips, inspector, found that Monmouthshire's processes for managing performance are now more consistent, more transparent and better understood by Children and Young People staff.
Mr Phillips in his letter said: "The Children and Young People's Directorate has a more effective system for reporting on the progress against the actions in the service improvement plans and on the achievement of performance indicators to senior officers and elected members. Staff at all levels are beginning to be held to account more rigorously for their areas of responsibility."
Chief executive of MCC, Paul Matthews, said: "We can take confidence from this last visit.
"If we keep going in the direction we are going, we should be hopeful and confident.
"We're not there yet, we have the final monitoring visit in the autumn. They will come back with a reasonably sized team and check us out against the six recommendations set in 2012.
"They will then form a judgement on whether or not we can be released from special measures.
"My view is we should be confident but we should put our foot down on the accelerator."
Council leader Peter Fox said: 'We won't rest until we're out of special measures. A huge amount of work has gone on and we recognise the key areas where we need to focus.
"I am strongly content with the direction and am confident come October we will move in the right direction once again."
The final visit from Estyn will take place later this year.

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