Law on Local Self-Government.

This Law regulates the system of local self-government, local self-government units, the manner and conditions of their formation, local self-government affairs, local self-government units' bodies, mutual relations between the assembly of the local self-government unit and the mayor, i.e. the head of the municipality, property and financing of local self-government units, acts and publicity of the work of local self-government units' bodies, the procedure for supervising the work of local self-government units' bodies, forms of direct participation of citizens in local self-government, cooperation between local self-government units' bodies, the relationship between republican bodies and local self-government units' bodies, protection of local self-government rights, as well as other issues of importance for the exercise of the rights and duties of local self-government units.
Local self-government is the right of citizens to participate directly and through their freely and democratically elected representatives in the pursuit of the common interests of the inhabitants of a local self-government unit, as well as the right and ability of the bodies of the local self-government unit to regulate and manage, within the limits of the law, public affairs that fall within their competence, and in the interests of the local population. Local self-government is exercised in cities, i.e. municipalities, and is carried out by the bodies of the local self-government units and citizens in accordance with the Constitution of the Republika Srpska, the law and the statute of the local self-government unit. The National Assembly of the Republika Srpska shall determine the strategic directions for the development of local self-government.