Analyzing definitions of municipality, the authors has concluded about important difference in the Latvian law “About local self-government” comparing with Worldwide Declaration and European Charter: there is absence of responsibilities of the persons in charge in the face of inhabitants in the Latvian law. Besides, there are state interests opposing to territory interests in law without explanation what are those interests. Describing different management theories of municipality we can find basic points that are completely opposite to each other. That shows the variety of managing practice in different countries as well as inside a certain one country. Therefore, the nationality, age, religion and etc. have the influence to the practice of territory management.