Introduction:Districts in Serbia have a long tradition, dating back to the early 19th century. In that period, they performed competences of state administration and local self-government at the same time. Serbia left the socialist model of constitutionality and returned to liberal-democratic constitutional institutions in 1990, and districts have their new position in constitutional system – districts are exclusively regional offices of ministries, a form of territorial deconcentration of power. Their main function is to accomplish orders issued by central administrative authorities (ministries). First part of this paper analyzes development of administrative districts and their current position in the constitutional system of Serbia (status, organs and competences). Second part of the paper discusses some options for improving of the position of administrative districts in the future, within the possible reform of the territorial organization of Serbia. Materials and methods:The methodological basis of the research consists of general scientific and special methods of cognition of legal phenomena and processes in the field of constitutional and administrative law: the method of systemic structural analysis, method of synthesis of socio-legal phenomena, the comparative legal method, formal logical method, historical method. Results:The analysis showed that the status of administrative districts should be changed. Administrative districts is the Republic of Serbia are offices (branches) of ministries that perform tasks of state administration They are therefore a kind of regional state administration bodies and organizational units of ministries. On the other hand, the existing districts, 29 of them, can represent a good basis for introduction of second level of local self-government in the Republic of Serbia. In this way, districts could obtain some competencies to conduct independently, by their own organs, elected directly by the citizens. In addition, districts would be able to keep their existing prerogatives and thus become a kind of “mixed” territorial units, which would unify functions of local government and local self-government. After all, municipalities in Serbia in many ways already have such a character. This solution would increase efficiency and democratic nature of the system in Serbia and strengthen the position of local self-government. However, in order to improve the position of districts in Serbia in this manner it is not enough to perform only revision of laws, but also the constitutional revision as well. Conclusions:The main conclusion is that districts should change their legal nature. They should become “mixed” territorial units (administrative and self-governing). In that way, they would be very similar to Serbian districts of the 19th century. Reform of the territorial organization of the Republic of Serbia, which seems inevitable, should seriously consider changing of the legal status and nature of districts. They could become respectable territorial units, which could have “mixed” character, so they could unite in themselves both functions of state administration and functions of local self-government. Such a character, which existed in the Serbian constitutional tradition for a long time, would allow districts, as both administrative and self-governing units, to establish more solid relationship between local communities (municipalities and cities) and institutions of central government. Their territorial, economic and demographic potential would be a solid basis for increasing of efficiency of local self-government and state administration in the Republic of Serbia. Besides, application of this model would completely overcome senseless regionalization project, which would surely bring more damage than good.