The questions of forming self-sufficient communities are considered in the article. The recommendations about improving a management system at the level of rural communities are developed directing on their productivity increase under the conditions of modern institutional changes. The main principles of self-government, which are the basis for development of an effective system of local self-government, are grounded.The modern system of management of the Ukrainian rural territories development should be constructed in a way that its main subjects to perform the functions, not to interfere with activity of each other and supplement it, that forms the united mechanism of providing comfort conditions for the population activity on the principles of social responsibility and partnership. The modern transformational changes of the rural territories institutional system are analyzed, in particular the threats as a result of implementation of the Concept of reforming the local self-government and power territorial organization in Ukraine were defined. It is possible to realize provisions of the Concept about transferring the majority of imperious functions of the Concept without deterioration of the services provided to the population only after expansion of the communities’ self-governing economic functions. The approach to the distribution of the state government and local self-government bodies’ functions in the sphere of a rural economy regulation is offered. The attention is focused that the functions of public authorities are oriented onto developing «rules of the game» and their performance supervising, and the functions of local government bodies are directed on creating the conditions for economic managing subjects which have important social value and prosecution for violating the state and society organizational and legal norms. The main directions of financial decentralization (formation of local budgets) are investigated in the article; also the priorities of forming economic incentives to the self-development and stimulation of Ukrainian rural communities economic growth are defined.