This study analyses various aspects of the interaction of the state administration, international organizations and the mahalla in Tajikistan, and investigates the social and economic changes which have influenced this traditional form of social organi zation. The text interweaves a theoretical approach with observations and research gathered during the conducting of fieldwork and the implementation of NGO pro jects. Particularly, three main questions are addressed in the text. The first of these is the relationship between the mahalla and the state administration, concerning which I provide insights into its legal basis as well as its practical implications. The sec ond analysed issue involves the complex problem of donor policies regarding local development as pertains to adopting elements of traditional self-government into the tenets of their development strategies. Lastly, the socio-economic situation in Tajikistan is considered, including its impact on the transformation of the traditional social institutions of the mahalla. The main conclusion of this study is that neither the state nor international organizations have managed to develop a model of coop eration with the mahalla based on principles of equality and partnership. Instead, this traditional social organization is subjected to various modifications aimed at conforming it to the requirements of the various parties concerned. In addition, over twenty years of economic crisis have resulted in changes within the social structures of Tajik society, which have further contributed to reshaping communal institutions and traditional practices.