Local self government units are the basic level of government in Serbia. The current situation in the local governments is based on the Law on local self government from the year 2002. Reforms have been partially implemented toward creation of a decentralized system. The new constitution sets out good foundations for further decentralization process. 

There are 167 municipalities and 4 cities (5th being Pristina), and 25 counties in Serbia. The average population of the municipalities is 60,000 residents (45,000 outside of Belgrade). The municipalities are monotype (town center with local surroundings) with the exception of the city municipalities. 
The local self government units have in there competency the following: communal services, master plan, development plan, budget, local transportation and infrastructure, cultural activities, public informing, sport, housing, protection of the human environment, primary education, primary health care, part of social care, and fostering of local economic development.

The recreation of the organization of national government structures at the local level, which is common in Europe, is present in Serbia as well.

Standing Conference of Towns and Municipalities (SKGO) is the national association of local governments in Serbia, which coordinates the work, supports, assists and shares best practices with its members, striving to create efficient, sustainable and democratic local governments in Serbia.