In this article author analyzes the development of local government as one of the foundations of the constitutional system of the Russian Federation. This institution has a serious impact on the entire history of the state, and is especially important in today's society. however, there are a number of features of local authorities today. Based on the analysis the author proposes a number of measures to harmonize the existing legislation. Practice has shown that the local government as an institution of direct democracy and public participation in addressing important issues are extremely important, but still not enough to effectively functioning in our country. In any country the ability of local authorities to effectively perform their tasks largely depends on how they are organized. With regard to the mechanism of local government, first of all, means the creation of an appropriate system of local self-government, the development of these structures, the establishment of competence of each of them, selection and placement. In view of the evolution of the institution of local self-government in Russia, it should be noted that in the process of democratization of the society, this institution has an impact on all the historical path of development of the state.