With the recognition of the importance of cooperation between local and regional government in creating conditions for economic and social development, through this paper, I wanted to present the activities that Osijek Baranja County is undertaking in order to equally develop all the units of local government in its territory. All the units of local government in the County premises do not have sufficient financial and human capacities to prepare and implement projects directed towards development and building of utilities and social infrastructure in their govern, therefore the County has issued a decision which resulted in creating conditions so that the County can place its financial and human capacities in the function of development its units of local government with the usage of European fond for rural development means and resources. In the beginning of the paper a reform of local and regional government in the Republic of Croatia has been analysed. Special attention was given to the Common agricultural policy of the European Union, as well as financial means that are ensured through European funds in order to guaranty its implementation. Republic of Croatia, as a member of the European Union, in implementation of the Common agricultural policy for the period 2014 – 2020., was obliged to enact its own national strategy for rural development – for its creation an analysis of the rural environment and presentation of the regional inequality was necessary in order to achieve conditions for a straightforward and balanced development with the usage of European Union funds. Furthermore, activities that the Osijek Baranja County undertook in the pre-accession period as well as after the passing of the Programme of rural development of Republic of Croatia for the period 2014. – 2020.., are shown in this paper. The Assembly of Osijek-Baranja County has issued a Decision on grants for the development of documentation for the implementation of Rural Development Measures from the Rural Development Program of the Republic of Croatia for the period 2014-2020, as a general act with the goal to connect units of local and regional government in creating preconditions so that the population can stay in the rural environment – the preconditions being building utilities and social infrastructure with the usage of means from the European agricultural fond for rural development.