Abstract. The article describes the law-making activities of local self-governing bodies, analyses the laws regulating the local self-government system, and studies the nature of the power authorities of populationand their direct as well as their indirect expression. The notions of popular sovereignty and democracy are discussed, and the point of view that the population does not have independent competence for direct decisions on issues of a power-wielding nature is contested. It is pointed out that not only local self-governing bodies, but also the population of a municipal area, have a right to make rules, or the capability to attach a general binding character to their commands as a primary way of realizing their powers directly, using the mechanism of a referendum or a citizens’ meeting.

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