The publication is aimed at disclosing the problems arising in the sphere of interaction of the members of a territorial community with the bodies and officials of local self-government (LSG) concerning its implementation, and potential ways of solving these problems. Within the terms of the carried out research the following problems of interaction of LSG entities have been disclosed: imperfection of normative-legal base regulating the procedure of interaction of LSG entities; excessive cumbersome structure of the public administration apparatus; lack of interest of the LSG parties in cooperation; lack of trust between local authorities and the public; lack of an effective mechanism for the implementation of feedback; low level of public consciousness of the population and, as result, absence of an effective algorithm for implementation of LSG.