This paper deals with the legal framework of local and regional self-government. The legal framework is primarily determined by the Constitution of the Republic of Croatia as a fundamental state act. The constitution determines the structure of the state power on the principle of the division of power into legislative, executive and judiciary, and limits it to the guaranteed right of citizens to local and regional self-government. Citizens are guaranteed the right to local and regional self-government through the representative bodies. Since the right of local and regional self-government is such an important issue, it is also regulated by the European Charter on Local Self-Government as an act of the Council of Europe regulating such a matter. Furthermore, several laws in the Republic of Croatia regulate the legal framework of local and regional self-government. Among them, the Law on Local and Regional Self-Government has been amended several times to find the best solution to this issue. The Law on Local and Regional Self-Government defines and determines basic concepts related to local and regional self-government, such as the concept of municipality, city, county (their self-management), administrative departments and services, local self-government, property and financing.