The purpose of the article is to study the current state and features of the development of united territorial communities in Ukraine and to improve the work of local self-government bodies. Research methods. In the research process were used the following scientific methods: systematic approach and economic and statistical methods, namely graphical, comparison, method of averages (for the research process of development trends of united territorial communities in Ukraine); analytical and forecasting (for identifying specific groups of areas that are different in population, social and economic growth, intergovernmental transfers). Research results. New directions for the development and improvement of the decentralization reform were proposed. It has been proved that budget decentralization is not a necessary and sufficient condition for differentiation of regional development in Ukraine. State policy on local self-government is based on interests of residents of territorial communities and provides for the transfer of a large part of powers, resources and responsibilities from local authorities to local self-government bodies. Elements of scientific novelty. Further implementation of the directions for the development of united territorial communities will allow to form a proper level of work of local self-government bodies as effectively and quickly as possible. Practical significance. The system of decentralization measures in Ukraine was improved. The substantiated proposals will help to increase the socio-economic development of united territorial communities in Ukraine. As a result of the research, it has been solved an important scientific problem, which consists of the development of possible ways for reforming and improving the system of public administration by introducing decentralization of power in Ukraine. Tabl.: 2. Figs.: 4. Refs.: 24