Local self-government bodies are an integral mechanism of the foundation of a democratic state. In the modern system of public relations, one of the most important places is occupied by general economic relations, namely local self-government. Without a developed system of local self-government, legislative and real opportunities, it is very difficult to independently create market-democratic structures to solve economic, social, domestic, cultural and other issues at the local level. Local self-government bodies are a special level of government, which combines two principles: public and state. In the practice of Constitutional and administrative law, it is important to determine the place and nature of local self-government and to establish balanced relations between State authorities and self-government bodies, on the one hand, with local representative offices and structures. The purpose of the article isto study the role and place of local self-government in modern society, to develop practical recommendations on the formation and prospects for the development of local authorities in Kazakhstan. When writing an article, the following methods are used: description, analysis and synthesis, justification, logical modeling, system analysis, etc. When studying the formation of local self-government, as well as the functional management system, the method of structural and analytical analysis was used. The conclusions and recommendations obtained as a result of the conducted research can be used: in the practical activities of maslikhats and akimats of the Republic of Kazakhstan, civil servants; in the process of studying at courses in higher educational institutions, as well as for further general theoretical and applied research.