The issue of decentralization has become very politicized. This has led to a lack of meaningful understanding of what decentralization brings to Kosovo's citizens regardless of their ethnicity.

Kosovo has 33 municipalities now. The local government reform process in Kosovo saw the creation of three new pilot municipal units (Hani i Elezit/Deneral Jankovic, Mamushë/Mamusa, and Junik) in 2005, and later their transformation into municipalities in 2008. This has been one of the most significant developments for local governance in Kosovo.

The Ahtisaari proposal for the settlement of the Kosovo status outlines that four new Serb-majority municipalities will be created and an existing municipality will be expanded. Serb interest in the creation of these municipalities has been lacking given the pressure Belgrade puts on Kosovo Serbs not to participate in Kosovo's public life. As regards the creation of these new municipalities, a lot will depend on whether Kosovo Serbs participate in the November 2009 local elections.