In Latvia territory, starting from the 10th century, the Baltic tribes created military-governmental structures with administrative centres. Knights started to reconquer the Balts’ lands, where governmental structures were founded. In the 14th century vogteys and commandries were established in Livonia: the Balts’ administrative system with its centres was supplemented with stone fortresses and settlements. In Latvia territory the first cities were founded. The territorial division of the Duchy of Courland and Semigallia was determined by Governmental Formula (1617): the high manor-lords’ courts were made, divided into the manor-lords’ districts. The main territorial unit was a feudal land property manor. After the third partition of the Polish-Lithuanian Commonwealth in 1795 the Russian Empire obtained Vidzeme, Latgale and Courland together with Piltene Region. Reform was implemented in Latvia territory: counties, provinces and parishes were founded; manors were preserved as administrative units without being included in parishes. On November 18, 1918 Latvia Republic was declared: the division into provinces was cancelled; counties with parishes were preserved. On September 16, 1920 the Constitutional Assembly passed the law “About the agrarian reform in Latvia Republic”; new administrative centres were created. During the World War II Germany and the Soviet Union occupied Latvia Republic which lost its independence. On July 21, 1940 the Soviet power was restored in Latvia, but on August 5 Latvia was included in the Union of Soviet Socialistic Republics. During the second Soviet occupation time (1944–1991) territorial reforms were carried out in Latvia. On May 4, 1990 Latvia again declared its sovereignty and on May 1. In Latvia Republic the two-level municipalities were changed into one-level municipalities; administrative units – regions were formed. Previous researches: Territorial Reform was implemented in Latvia Republic (1999–2009) to create municipalities that are able to develop themselves. The impact of the reform on the economics has been assessed insufficiently. Topicality of the theme: analyse benefits and deficiencies of Latvia Republic Territorial Reform. Research goal: find out the impact of Latvia Republic Territorial Reform on the development of administrative centres.