Local self-government is a form of direct democracy that aims to involve citizens in making important decisions regarding the immediate environment of their place of residence. Socialist Yugoslavia had a highly developed system of local self-government in the form of Local Communities (mesna zajednica) that gave citizens the opportunity to directly decide on achieving common goals and meeting common needs in urban, suburban and rural residential areas. This paper offers arguments in support of the revival of these Local Communities, relying on modern concepts of common goods, municipalism and direct democracy. Bearing in mind that Local Communities still legally exist in Serbia, but that in practice they no longer perform the function of local self-government, this paper also offers a brief overview of how Local Communities functioned in Socialist Yugoslavia, as well as their current status. Finally, the paper offers a series of concrete political, administrative and legal measures for the restoration of local self-government through the revival of Local Communities.