Local territorial self-government must respond flexibly to new trends that with varying intesity affect cities and municipalities, but also the lives of their inhabitants. The Smart Agenda has a significant impact on towns and villages and it presents a chance to modernize them. It is an opportunity to increase efficiency and a tool for their further development. It will gradually become a competitive advantage that self-governments have to prepare for. It is an investment for a new perspective that combines the roles, responsibilities, demands of the population, as well as visions with technological solutions. Its proper understanding and systematic approach are preconditions for further success.