Considering that the aim of the Council of Europe is to achieve a greater unity between its members for the purpose of safeguarding and realising the ideals and principles which are their common heritage; Considering that one of the methods by which this aim is to be achieved is through agreements in the administrative field; Considering that the local authorities are one of the main foundations of any democratic regime; Considering that the right of citizens to participate in the conduct of public affairs is one of the democratic principles that are shared by all member States of the Council of Europe; Considering that it is at local level that this right can be most directly exercised; Convinced that the existence of local authorities with real responsibilities can provide an administration which is both effective and close to the citizen;

In 2007, the Government of the Republic of Macedonia adopted the first Strategy for Cooperation of the Government with the Civil Society and the Action Plan 2007-2011. There, the Government emphasized the importance of the civil society in general, thereby setting the ground for its cooperation with CSOs and took a systematic approach in strengthening the basic conditions for a faster and more efficient development of this sector. The Strategy refers to the cooperation with associations and foundations, as part of the wider civil society sector, with the aim of ensuring inclusive 
process and engagement of the civil society in policy making processes. In the period following the adoption of the Strategy, a number of activities were undertaken, each with the aim of implementing the goals and measures and strengthening the sector. Following the example of that Strategy, a number of other strategies and documents were adopted, through which institutions on both a national and local level expressed their commitments to develop certain areas important for the work of the civil society and to include CSOs in inter-sectorial initiatives.

This law regulates: the competencies of the municipality; the direct participation of the citizens in the decision-making; the organization and work of the municipal bodies; municipal administration; acts of the authorities; property-ownership of the municipality; supervision over the work of the municipal bodies; dissolution of the municipal council; mechanisms of cooperation between the municipalities and the Government of the Republic of Macedonia; local government; protection of local self-government; determination of official languages ​​in the municipalities and other issues of importance for the local self-government.