Answer : Local self-government means local or regional government. It is a part of the State or national government. It works on those subjects only which are related with the interest of the local people.
It is not always possible for the Central and the State Governments to look after the main and urgent necessities and requirements of the different localities under their administration. So Corporations, Municipalities, District and Local Boards are established for the maintenance and improvement of cities, towns, districts and sub-divisions. These are conducted by the local people, and so this system is known as Local Self-Government.
A local self-government is smaller in size than the State or national government and it administrates the area, village, town or the metropolitan cities. For example, there are Gram Panchayats (Village panchayat) in villages and Municipal corporations in urban areas.
The local self-government is administered or conducted by a body consisting of the representatives of the local people. Part of its total revenue is collected by imposing some taxes locally. And its total income is spending for local development and services. Its services are quite different from the services of the Central or the State governments.
Also read, importance of Local Self Government.