The local and municipal administrations are historical/structural component of nation-state. This peculiarity of the nation-state paradigm originates from me functionally separated characteristic of the local administration as a part of the central administration. The local, with multi-purpose organizational structure, have been territorialized the national scale in the sense of organizing consumption-and of constructing infrastructure. However, during the period of globaf capitalism, the local and local administrations have come into the agenda in two distinct ways. On one side, local admmistrations, together with the nation-state, have been positioned as the transforming agent of the existing structure. This position displayed itself in the form of privatization of local services and of widespread application of the managerial municipality approach. In other words, as the local administrations are a structural part of the nation-state, transformation and dissolving of the'local services would, at the same time, mean dissolving of the nation-state, as well. On the other hand, since the national scale has not been considered as an appropriate aiarket size for the global capitalism any more, the local come to the fore as a new scale for the market of globalization. Yet, the local has been ensuring territorialization of the global economy through the vision of communitarian governance and of the single-purpose local administration, not through the current organization of local administration.. Within this process, the monolithic power formation of the mayor at the administrative leyel and of the notables and new global urban elites at the political level and the global capitalism at the economic level are in harmony with each other. The municipality reform realized in.Turkey is also oriented towards .reconstruction and reinforcement of .this monolithic power structure.