Decentralization of governance is an important component of the processes of societal transformation in the countries of central and east Europe (CEE) and in the Commonwealth of Independent States (CIS). Decentralization brings government nearer to the citizens, creating conditions for democratization of governance and for increasing its efficiency. Introducing a functioning system of decentralized governance is a demanding process that has to be carefully designed. It cannot be completed within a short time by a one-off legislative act. The reform rather requires a continuous attention and permanent fine-tuning and has sometimes to be implemented in several stages. To succeed, it needs a determined political support from the central government. Decentralization is also a complex process whose dimensions and prerequisites are not just political, legal and administrative, but also economic and cultural. Moreover, practicable approaches to decentralization are to some degree country-specific and they heavily depend on time and context.