One of the most important process of democratization, which Albania is faced after years 90, is the decentralization of Local Governance. Albanian’s local Government Structure is based on European Cart of local Government’s Autonomy and Albanian Legislation. Despite some recent amendments to legislation, it is inadequate for the new social and economic developments. Although some improvements have been evident, the migration from rural areas, social and economic issues, high index level of corruption, lack of expertise leads to inefficiency in the procurement of public services. As consequences re-organization of Local Government is a necessity. This paper discusses the services provided by and functions of local councils, the arguments for merging small units and the need for much broader structural changes to local government.