This Law establishes the Local Power units, the municipalities, based on the following objectives: - Promotion of institutions of a strong, legitimate and stable State throughout the territory of Timor-Leste; - Promotion of opportunities for the local democratic participation of all citizens; - Promotion of a more effective, efficient and equitable offer of services for the social and economic development of the country. The current administrative jurisdictions, i.e. the present informal territorial division that includes the sub-district and district levels, will be merged to form new consolidated and efficient administrative units at the district level, with assemblies of representatives, which can provide adequate services to citizens and have sufficient capacity to carry out their functions. Municipalities are being established based on the guarantee that each one: - Maintains ethnic-linguistic homogeneity and local cultural identity; - Demonstrate a balance between development potential and resources; - It has an administrative center that allows it to house the Municipal Assembly and municipal services; - Holds a minimum population that allows a certain level of efficiency in administration and provision of services.