This research work discusses and analyses the relationship between the mayor, as the highest political official and the director of municipal administration as senior civil servant. The first section presents the history of local government in Slovenia and the Constitution of the Republic of Slovenia, which is the highest general legal act and the local government has its own chapter in the Constitution. Principles that lead local government and are important for a successful operation and development of local self-government is the principle of autonomy, the principle of subsidiarity and the principle of regionalization. Slovenian municipalities are increasingly involved in Joint Municipal Administration to perform specific tasks, as the municipal administration in small municipalities are understaffed. In addition, the municipalities integrate themselves in the Association of Municipalities to ensure their common interests better in the field of local self-government. Municipalities cooperate with each other based on agreements of town, which has a positive impact on local government and the local environment, because of the contact with international partners, exchange of experience and the acquisition of various new skills. In the following part of the work levels of local government in the neighbouring countries, the Republic of Croatia and the Republic of Austria are presented. The second part of the research work, a comparison of local communities in the two selected European countries, is presented. A comparison was made about relations between the authorities and the local government policy based on interviews. In the interviews, the mayors and directors of municipal administrations of small Slovenian, Croatian and Austrian municipalities participated. The thesis also shows the opinions of mayors and the directors of municipal administrations of their relations in the municipalities.