The aim of the paper is to present the studies on the development of local politics and adopted policies in post-socialist cities resulting from re-establishing of the local governments systems in Central and Eastern European countries. Local communities regained after 1989 their subjectivity and ability to decide on their development and resolving problems without state interference. Local government institutions have been established and the competences in the process of decentralization have been granted. Cities are the special case of local politics. On this level also significant changes have taken place. Electoral way of selecting representatives of local communities led to creation of local political scenes with local elites and party systems separated to some extend from central politics. This caused also deep elite change and creation of new local politicians, especially in the first years of transition. System change brought dynamic development not only in spatial meaning but also social, cultural and economic. Local authorities became now the creator of this developments running policies in different spheres within the scope of their competences and autonomy they posses. In the first years of “new reality” they had to face many challenges to overcome the “legacy” of the old system. Many investments were necessary especially in infrastructure, renovations, restructuring of local industry and other subjects like local transport, housing associations, cultural institutions and many others. Serious problem were also very high debts, insufficient financial funds and social problems like high unemployment. Real breakthrough was joining the European Union and releasing European Funds programmes. They made possible many investments in infrastructure, revitalising and new ordering of the urban sphere, stimulation of cultural or social life. The private sector and it’s cooperation with local governments had also big significance in this process. Huge shopping malls, new houses and settlements have been built by commercial investors and public facilities have been changed in public private partnership as well. Local governments also stimulated cities’ development through organising big events, which make new public (eg. cultural) infrastructure develop. The only problem is involvement of local community and civil society structures into the process of political deciding and policy creation. Neither local politicians nor social actor (units and organisations) have not developed the way of consulting and bringing inhabitants into realised project. This leads to many conflicts and extension of time and costs of investments. Introducing governance concepts seems to become the second big transformation in the future.