The author evaluates the institute of a dysfunctional municipality in the context of its connection with the municipality‘s right to self-government. He points out the problems of legislative establishment of the given institute, which considerably relativize it in terms of its possible use. The author advocates a comprehensive solution of the problem in the form of a communal reform based on theoretical knowledge of public power (territorial self-government), experience of other European Union states and the needs of Slovak municipal self-governments.