Topic of good governance is an issue of great importance to quality of governance, understood as the manner and effects of governance, which basically amounts to administrative action. Recently the terms ‘governance’ and ‘good governance’ are being increasingly used in the literature. Bad governance is being increasingly regarded as one of the root causes of all bad things within communities and public administration on the local as well as on the national level. That is why the paper shows the main role of good governance in the functioning of a commune in a sub- region and its influence on the creation of development strategies and on improving of living conditions in the local areas.