on of the administrative-territorial reform, in particular processes of forming united territorial communities (UTC) in the countryside. Research methods. Argumentation of conclusions was based on a systematic approach, which envisaged generalization of theoretical concepts of a concept of rural development and basic principles for decentralization and self-governance, as well as interim results’ assessment of formation of UTC in Ukraine in order to identify prospects and risks for rural development. Accordingly, a statement of theoretical positions was based on generalization of conceptual foundations for sustainable development, spatial organization of society, public welfare, joint management and collective interaction. In order to assess prospects and risks for rural development were used general scientific (dialectical, analysis and synthesis) and special economic and statistical methods of research: structure analysis for identifying potential UTCs’ own financial sources justifying in this context strategic priorities for rural development; medium size, grouping and benchmarking for identifying promising and risk groups of UTCs due to their institutional capacity for development of all villages in the united formation. Research results. There were substantiated fundamentally important strategic priorities for rural development in Ukraine, namely, ensuring employment and increasing incomes of the rural population at the expense of wages and entrepreneurship. Processes of formation of UTC in rural areas as a factor of rural development were identified. Interim results’ evaluation of the administrative-territorial reform in Ukraine through a prism of institutional capacity of formed UTC to the socio-economic development of all villages allowed to substantiate conclusions on minimizing rural development risks. Elements of scientific novelty. There were identified merge processes of territorial communities in terms of formation of an institutional environment that determines directions and coverage of rural development. There were developed approaches to interim results’ analysis of merge of territorial communities in rural areas, which allows to identify prospects and risks of these processes for rural development. Practical significance. The identified risks of rural development as a result of actual parameters of merge process of territorial communities in Ukraine can be used to substantiate proposals for making adjustments to national plans for UTC’s formation in order to minimize risks for rural development, maximize a self-governance of each village, provide institutional capacity of communities to social and economic rural development of all of settlements without exception. Tabl.: 2. Figs.: 2. Refs.: 17