The purpose of the article is to reveal the essence of the process of power decentralisation, its impact on rural development, and to identify ways for further development of rural united territorial communities.

Research methods. In the research process were used the following scientific methods: dialectical methods of cognition of processes and phenomena; monographic (for analysis of social infrastructure and state of creation of rural united territorial communities); abstract and logical (for theoretical generalizations and formation of conclusion); comparative analysis (for identification of causes and differences in the dynamic development of Ukrainian village); empirical (for complex evaluation and analysis of the research object).

Research results. The process of power decentralization and creation of rural united territorial communities was analysed, and the stages of social development of Ukrainian village were determined. The reasons for degradation of Ukrainian village, the negative impact on the formation and development of rural territories of excessive power centralisation, lack of clear separation of powers between local authorities were identified. The role of local self-government in rural development, as well as the factors that will contribute to accelerating the power decentralization in Ukraine were investigated.

Elements of scientific novelty. Theoretical and practical provisions on the process of power decentralization, successful implementation of which is a key point to rural development, were further developed. The necessity to create a qualitatively new system of social life of peasants that would change the demographic situation and negative tendencies in social rural development at the present stage was proved. Methodological approaches for creating united territorial communities and enhancing the role of local self-government in the institutional support of socio-economic rural development were improved.

Practical significance. The main points and conclusions of the article contain some methodological and practical recommendations for power decentralisation and its impact on the formation and development of rural areas. The process of decentralization was analysed not only through a prism of achieving full autonomy of local budgets when using available financial resources, regardless of the central budget, but also through the clear separation of powers and the transfer of most powers from central to local authorities. Concrete examples have showed positive impact of decentralisation on rural development, as well as possible shortcomings and miscalculations (administrative intervention, haste, violations of the principle of voluntary involvement of communities, etc.) and measures for their elimination and successful completion of the decentralisation process.