Currently the major task of administartive and territorial reform in Ukraine is the decentralization of the system of public authorities, which aims to ensure that the united territorial communities (UTC) have both their own and delegated capacities that allow them to solve major local developmetn problems. The abovementioned boosts the scientists’ interest in the research of the UTCs’ living activity processes, which are mostly oriented at improvement of legislative provision of local governance, development of the network of social and cultural infrastructure, forming of favourable business environment and involvement in active entrepreneurship activity. At the same time, such an important problem as coordination of economic activity between territorial communities in conditions of their mutual interdependence hasn’t been examined properly. This strengthens the scientific community’s attention to forming of efficient mechanisms of economic coordination between territorial communities as an important instrument of alignment of their common interests with the view of efficient use of their development capacity. The paper aims to outline conceptual approaches to forming of the mechanism of economic coordination between territorial communities. The approaches to the formation of the mechanism of economic coordination of the united territorial communities’ activity are proposed. The need for the formation of the mechanism for coordination the economic activity of the united territorial communities stems from the fact that local and regional processes are interconnected and interrelated; they are correlated as a part and whole, which is a condition for ensuring the integrity and integration of the regional economy. Based on the analysis of world experience, it is substantiated that strengthening the economic coordination of communities’ economic activity is one of the effective tools for solving the problem of their interdependence, which allows to align their interests and to mobilize the available resource potential for solving key problems of their life. Considerable attention is paid to the substantiation of the factors that determine the need for inter-territorial economic coordination of geographically close and cooperating united territorial communities in the sphere of economic activity, implementation of social policy, rational environmental management. The authors reveal the principles, forms and methods of economic coordination, which allow promotion of the development of inter-territorial cooperation, formation of partnerships, creation of various integration formations, clusters, etc on the basis of partnership. 

united territorial communities, coordination, mechanism, interaction, interests, development