True this paper it would be analyzed sub-municipal government as a organizational form of local governance with comparative perspective, and elements which generally formed sub-municipal government as a tools for delivery of local public services and managing of local initiatives which are important for the local community. These two roles are crucial for understanding of dynamic in sub-municipal government. Special focus would be held on sub-municipal government in South- Eastern European countries, which they have a common history and institutional framework, with the main question: how can sub-municipal government contribute to strengthening of decentralization and democratic processes in the local community directly and, indirectly in whole society. Self-government systems which are highly decentralized usually have developed sub-municipal government. On the other side, in centralized countries sub-municipal government usually has reduced role which is connected with managing of public tasks connected with local community needs. The main question is how sub-municipal government can improve decentralization, and how those efforts at the end of the day contribute to better development of whole society.