Local self-government is an autonomous system of management of local communities constituted in narrower parts of the state territory. The development of local self-government is one of the conditions of democracy and the rule of law. As self-government in local communities is a citizen's right usually guaranteed by the constitution, for the state it means an obligation to create conditions for the continuous functioning of the local community as a whole. The first forms of local self-government can be recognized in Europe in the 15th and 16th centuries in the form of communes, medieval towns that were granted the status of free towns by the king or feudal lords through charters and statutes. Nevertheless, the source of local self-government, as we know it today, is considered to be England, which was the first to have independent forms of governance in narrower territories. For decades, Europe has dedicatedly worked on the affirmation of local government. This affirmation means, on the one hand, decentralization in terms of bringing the decision-making process closer to citizens and encouraging their participation. On the other hand, it means transferring the work of starting economic development to the local government, because it can mobilize all potentials for development more easily than other levels of government. Modern democracy requires a partnership type of relationship between all levels of government and the disappearance of old hierarchical relationships. In Europe, these processes were followed by the introduction of the principle of subsidiarity in the division of responsibilities and the establishment of functional relationships of various levels of government. This principle means that a certain range of competences is given to the level of government that is closest to the citizens and that can implement these tasks in the most efficient and high-quality manner. At the same time, the standards of the European Charter on Local Self-Government mean ensuring that every resident of Europe has similar conditions and the chance to meet their needs and participate in the decision-making process on public matters.