The law aims to decentralize public authority by actually ensuring generally recognized European principles of organizational, legal and financial independence of local self-government bodies, as well as fundamentals of fair and unbiased public wealth distribution among the citizens and territorial communities, as provided by the Constitution of Ukraine.

The law regulates the relations, emerging in the process of voluntary unification of communities of villages, urban type settlements, and cities.

The respective draft law is registered under No. 0915.