A system of local governance is established in which municipalities play an increasingly important role in service delivery, eradicating poverty and improving the social and economic conditions of South Africans;

A local government system is put in place that will accept that urban and rural areas differ. This new vision will be developed and implemented through legislation such as the Municipal Demarcation Act, 1998 (Act 27 of 1998), the Municipal Structures Act, 1998 (Act 117 of 1998), and the Municipal Systems Bill, 1999, which will provide the building blocks for the new system of local government;

New processes and institutions with new principles and support mechanisms will be created that will enable local government transformation to take place.Villages with traditional leadership will not be tied to urban areas,and conversely, the UCDP will distinguish between core local government and municipal functions;

The position, authority and status of traditional leaders will be recognised by putting in place the national and nine provincial houses of traditional leaders;

Traditional leadership will be strengthened and modernised;

Regional authorities for traditional leaders will be re-introduced;

Services of ethnologists given more priority; and

Efficiency and service delivery will be demanded of local government employees.
The Constitution of South Africa (Act 108 of 1996) is the fundamental guideline in the way South Africa is governed and administered.