One of the most important steps in the transition from the so-called “real socialism” to democracy was the process of administrative decentralization. In less than ten years, after the “round table” agreements, Polish parliament was able to introduce reforms that changed the structure of local governments. It created three tiers of self-governments and provided redistribution of authority, responsibility, tasks and competences between the government (and their institutions) and local governments. The first aim of the article is to present this process and indicate crucial decisions and actions made by Polish parliament. The second part of the article is mainly based on the results of a research made by CBOS and non-governmental organization...