Local self-government is base of the democratic political system. Local self-government based on the constitutional regulation and that represent the law of the inhabitants of the local community for self-organizing and the make of the decision about affairs which are according to constitutional provisions defined like a local affairs by their nature. Republic of Croatia is ratified European Charter of Local Self-government which represent an important instrument of harmonization of local institutions. In Charter is highlighted principle of subsidiarity which demands that each public affair is designated to the lowest level in territorial administrative system able to preform in an appropriate manner. Changes of the Croatian Constitution in the year 2000 in harmony with subsidiarity principle, was adopted a head VI. which is refers to local and regional self-government. The paper deals with the positive regulations which make a legal framework of the local self-government in the Republic of Croatia. For a legal framework it is necessary to start with the highest legal act in the Republic of Croatia and that is the Croatian Constitution, then follow important international document for local self-government and it is a European Charter of Local Self-government. In continuation of the paper follows a systematization of provisions of the Law on Local and Regional Self-government, then the Law on Financing Local and Regional Units and the Law on Local elections.