Telework or smart work is alternative way of working, when employees are working outside the official office using different information sources and communication technologies (computer, internet, phone etc.). The goal of the article is to analyze how establishing of Smart Work Centre (SWC) will promote economical activity of municipality. Socio-economic development of two local municipalities of Latvia – Limbazi and Cesis municipalities is analyzed. In Latvia, like in other European countries and rural areas, the main problems are depopulation, ageing of society and high level of unemployment. The main reason of depopulation is negative migration balance – people are looking for new job opportunities in larger cities or abroad. Establishing of SWC and telework possibilities will help to maintain people in the rural areas. It will improve not only economical indicators of the municipality, but also activate social life in the region.