This article discusses the key aspects and prerequisites for the implementation of the Digital Municipality project at the North-Western Institute of Management of the RANEPA. The article analyzes various approaches to understanding the essence of the process of digital transformation of the municipality. The important components of the new paradigm of municipal government are considered. The main problems of digital transformation of municipalities are identified. The role of digital dialogue in the development of the municipality and its inhabitants is studied. As part of the study, an attempt was made to comprehend the role of digital technologies in improving management activities, and the need to implement the Digital Municipality project was substantiated.