Smart governance is challenge for rural municipalities in Latvia due to depopulation and shrinking processes in rural areas. Rural municipalities, as agents of society renewal, are tasked with promoting citizens' participation in different activities of local development, including revitalization of the cultural environment, in order to promote socio-economic development, community renewal, population development and spatial sustainability of the area. To make this process more productive and

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... rposeful, it must be managed competently; thus, the issue of good governance is especially important. This study uses qualitative research methods -document analysis and semi-structured interviews. Data was obtained by studying the districts of Mazsalaca, Kraslava, Engure, and Kandava, as well as the town of Sabile, starting in 2015. Research results suggest that an essential instrument used by municipalities for strengthening of the role of local residents in districts is communication with the local community, the building of the capacity for trust and participation, and popularization of examples of good practices in local community and on a larger scale, demonstrating what results can be achieved by the self-initiative and self-activity that are one of preconditions for successful endogenous development. The research was conducted as a part of the State Research Program EKOSOC 5.2. (projects 5.2.4 and 5.2.8).