Local authorities are considered part of the overall system of government, which is in the closest relationship with citizens. In this sense, it is up to the local government to recognize the needs of the inhabitants in the area of the local unit, which means that timely response is necessary to meet such needs. Utility activities are performed as a public service and their proper functioning is necessary in order to meet the needs of general interest. Utility activities are services that are necessary for everyday life of citizens in the area of a given city and municipality, and the utility economy is considered part of the economy that provides services in utilities. The aim of the final paper is to present the performance of utility activities in the system of utility economy, using professional literature and legal sources. How communal activities are divided and the way they are performed affects the daily life of the population of each community, and the responsibility that accompanies the performance of communal activities is especially important. The paper also points out the financing of communal activities, considering that the permanent priorities of each local unit should be the regular and continuous delivery of communal infrastructure services, with the amount of the fee that is acceptable, which is paid by the citizens. In the final part of the paper, practical examples of selected Croatian cities are highlighted.