The purpose of this paper is to examine the theory and practice of the constitutionally prescribed function of local governments, and introduce the 1990s 'reform of local administration in Japan from the viewpoints of administration and law. We will first describe how local government has been guaranteed under the Constitution. Second, we will analyze why local self-government has not worked out precisely as the Constitution had designed. Third, we will introduce the 1990s 'reform of local administration in order to achieve genuine autonomy.