This final paper, entitled "The Analysis of Local Government in the Republic of Croatia", has analyzed the concepts of local government in the Republic of Croatia as well as how the local government has developed since Croatia became independent. Furthermore, an analysis was made of the characteristics of the local government system in the Republic of Croatia and its important Regulations, ie. the Legal Acts related to the local government and its activities. What are the bodies of local self-government, what is the supervision of local government like and what is the regional planning like at the local level. The annual budget of the local governments in the Republic of Croatia or more precisely, the sources of income, municipal and city taxes, municipal fees, contributions and the other ways of financing and earning income are discussed. Legal Acts, the development of local self-government in the European Union and other important information related to the local government and its activities are also briefly discussed. This paper is supported by many examples and comparisons related to the creation of new towns and municipalities that talk about discrepancies in the establishment of the same.