Development of a territorial community requires efficient use of its capacity taking into account all possible aspects in the course of elaboration and implementation of the development strategy and other local legal and regulative documents. The approach is directly related to maintaining the living activity of a territorial community and should correspond to the interests of population and European standards of state regional policy. In addition to the definition of a community provided by the Law of Ukraine “On Local Governance in Ukraine”, there are also some other. For example, some authors understand territorial community as a single natural and social entity that operates in spatial boundaries of a state and realizes daily needs and interests of population. The paper aims to analyze legal and regulative foundation of the development of territorial communities in conditions of decentralization. The authors analyze current condition of legal and regulative maintenance of local governance reforming in Ukraine in conditions of decentralization of authorities. The paper argues that the major elements of management strategy in CTCs in Ukraine are independence, efficiency, management innovations, quicker and more substantiated decision-making and everything to meet the needs of community’s residents. Management of this sector is grounded on the principles of the provisions of European Charter of Local Self-Government that provides for decentralization of authorities and transfer of resources and responsibilities to local governments. Liabilities of local governments (of consolidated territorial communities) and the mayors are analyzed. The authors prove that in general legal provision of decentralization of local governance corresponds to European requirements and creates reliable ground for practical stage of the reform. The list of issues that require further legal regulation is outlined.