The article is written to analyze meaning of cultural heritage and the role of municipalities to develop this sphere and to make it understandable to inhabitants in context of sustainable development. In the article there are analysed Kuldiga municipality activities to preserve cultural heritage by designing planning and preserving documentation, as well as by informing and educating inhabitants how to arrange environment of cultural heritage. A cultural and emotional linkage with heritage can be established only through knowledge provided to inhabitants and visitors of the town.In the article there is analysed Kuldiga old town vision – in planning documents, in town construction rules and in town construction projects for 21st century. The development strategy of Kulgiga is to preserve its unique cultural heritage – historical centre and a complex of nature around it. [2] There is analysed the role of inhabitants of Kuldīga in preservation of the old town and stressed that municipality works in accordance to The principle - if the inhabitants and visitors of Kuldīga are informed about the cultural heritage values of the old town, then these values will be protected not only by the municipality and state institutions for cultural heritage protection, but also by the townsmen themselves who are directly responsible for protection of those values. There is an analyse of Kuldiga municipality work in involvement of inhabitants and professionals in cultural heritage protection, with principle that investments in education and culture are not only a democratic action, it is the best way how to guarantee protection of heritage in future. Jeroni Martorell, who was one of the founders of Spanish monument restoration, in 1920 wrote: “Our work is to reinforce and restore the buildings, but we should also try to arouse public interest in monuments so that people would appraise and understand them more. Since public recognition is the best guarantee of preservation.”[7]