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In the administrative territories with small number of population, deficiency of infrastructure and resources for municipalities' function can be observed. According to this, already in the 90ties, reform of local governments was initiated in Latvia. The cabinet, basing on principles of local governments in European Charter (1985), accepted conception of the reform. The Law „On Administrative-Territorial Division Project of local governments' was carried in 2006 but rules on administrative division of local governments were issued in 2008. According to the law on Administrative-territorial reform, it is envisaged to implement administrative territorial reform of the municipalities till election of local municipalities in June 2009 (deadline - 31 January, 2009). Its' aim is to form administrative territories with local governments able to develop independently which would secure qualitative service to population. Unfinished reform makes difficulties to local government election's process. [ABSTRACT FROM AUTHOR]