The local self-government reform in Russia in recent decades has gradually diverted this institution from the essence of its creation, embedding it in the vertical of state power under the image of public power. The 2020 constitutional amendments have only accelerated this process. The paper attempts to substantiate the need to preserve municipal power in the form that it was originally inherent in, being a prototype of the theory of a free community or at least dualism. The paper is based on the theoretical advances of scientists and the author’s insights, as well as on a number of issues of local importance, including land, tax, urban planning and other public relations. The author has attempted to show the need for local self-government at the present time, if the necessary vector of development is given to it by organizational and legal means. The increasingly expanding practice of delegating state powers and the introduction of a single-level system of territorial organization of municipalities plays a negative role in the issue under consideration. In order to overcome problematic trends, it is proposed to implement the existing institutions of municipal law in a new way, which will give positive results and for which there is a real demand from the population. Thus, people are reluctant to participate in various events related to mandatory face-to-face attendance, but actively vote for options for improving public space, do not want to be deputies of rural settlements, but help each other in difficult situations and go out on clean-up days, etc. The subsequent transformation of local self-government should be based on the needs of citizens, not the state.