The the changing approach on the nature of local governance in Hungary is reviewed by this chapter. During the Democratic Transition the evolvement of the Hungarian municipal system was based on the paradigm and approach of the European Charter of Local Government. Thus one of the most autonomous local government system of Europe evolved in Hungary. Although the municipal reforms were basically successful, several dysfunctional phenomena could be observed and the request for the municipal reforms was strong from the late 1990s in Hungary. The new constitution of Hungary, the Fundamental Law introduced a new model. The approach of the local governance has been transformed: the autonomy of the municipalities have been limited. Thus the autonomous nature of the Hungarian model changed and new challenges have appeared in the field of the implementation of the regulation of the Charter.