Local government mergersSee alsoAccording to the Territory of Estonia Administrative Division Act local councils or the Government of the Republic may initiate changes to the administrative division of the territory of Estonia. The Government of the Republic enacts the amendments. In 2004 The Promotion of Local Government Merger Act entered into force. The purpose of this Act is to promote the merger of local governments and structuring of the administrative division of the territory resulting in an increase of the administrative capacity of local governments and their ability to prepare successful project applications, improvement of the accessibility and quality of public services offered by local governments within their territory and growth of the cooperative ability of local governments. Merger grants are allocated from the state budget to the local governments formed as the result of a merger. The biggest number of mergers took place in 2005 when 22 cities and rural municipalities merged into 8 new and larger rural municipalities which left 227 local governments in Estonia. In the begginning of 2009 minister of regional affairs presented a proposal of local government reform, which would leave 15+5 local governments in Estonia. This proposal failed as there was not political consensus at the subject within government. in Autumn of 2009 there was a merger of 2 rural municipalities and at the present day there are 226 local governments in Estonia. The number of logal government mergers taken place since 1996
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