In this study which emphasizes the importance of local democracy and participation in determining the local needs of people, the status of city councils, an important structure in local participation, has been examined. Firstly, the transition from representative democracy to direct democracy has been depicted within the scope of the developments which have happened in the sense of democracy. It is important that local people have right to have a voice over determining their own needs in the functioning of direct democracy at local level and directly participate in decision making process. In this article, the concept of governance which is defined as common action of the governors and the governed has been also highlighted. Within this framework, governors will explain the costs and benefits of services to be presented to the people while the local people will participate in the local decisions to be taken by local assembly. City councils that will enable local democracy and strong participation will make the decision making process easy for the governors.