The implementation of new economic policies caused transformation in local governance. They are considered as a reform, but their incomplete nature is noted. There are following directions of the reforms: changing of the organizational structure of the Soviet institutions; administrative territorial reorganization; the democratization of the electoral legislation; recognition of municipal property and property rights of local councils; the formation of balanced budgets. The unified concept of the reforms was missing, although all conversions were synchronized. The peak of reforms falls on 1924-1926, and despite the positive results, they did not received any further development. The political leadership did not designate clear reform goals, local leaders did not always understand their content and purpose. Created as a result of the administrative territorial reform provinces and regions could potentially develop as economically self-sufficient entities. Districts, cities and other villages acted as organs to the uttermost close to the needs of the population. The implementation of the reform dragged on and led to adjustment of unambiguous lines on the consolidation of the administrative territorial units. The organizational restructuring aimed at simplification and reduction of the local machine. The powers and jurisdiction of individual agencies were clarified. The property rights of local councils were recognized. They had a significant amount of municipal property. They could choose how to operate it. Most of these objects were leased or pooled into trusts. The establishment of local budgets at all levels (except agriculture) provided the financial stability of the local authorities. The most systematic were transitions of the lowest bodies - rural authorities and councils. The "new course" policy was proclaimed. Its realization can be considered a separate reform. Districts were created instead of volost. District authorities obtained significant powers. The district budget was formed. The liberalization of the electoral legislation made it possible to bring credible and respected peasants to the Deputy Corps. The "new course " policy revealed problems and contradictions typical of other reform areas. The legislation formulated rules that opened the possibility of independent actions of local councils. Upon the occurrence of the first serious signs of such autonomy (the outcome of the election, economic activity, fiscal stability), the authorities took restrictive measures.