are the first level administrative subdivisions of the country and largest entities, constituted of municipalities and cities. Districts are regional centers of state authority, but have no assemblies of their own; they present purely administrative divisions, and host various state institutions such as funds, office branches and courts. Districts are not defined by the Law on Territorial Organisation, but are organised under the Government's Enactment of 29 January 1992. Serbia is divided into 29 districts.
Municipalities and cities
;Municipalities Serbia is divided into 145 municipalities and 29 cities, which form the basic units of local government. Each municipality has its own assembly, a municipal president, public service property and a budget. Municipalities usually have more than 10,000 inhabitants. Municipalities comprise local communities, which mostly correspond to settlements in the rural areas. Urban areas are also divided into local communities. Their roles include communication of elected municipal representatives with citizens, organization of citizen initiatives related with public service and communal issues. They are presided over by councils, elected in semi-formal elections, whose members are basically volunteers. The role of local communities is far more important in rural areas; due to proximity to municipal centers, many urban local communities are defunct. ;Cities Cities are another type of local self-government. Territories with the status of "city" usually have more than 100,000 inhabitants, but are otherwise very similar to municipalities. There are 27 cities, each having an assembly and budget of its own. Only cities have mayors, although the presidents of the municipalities are often referred to as "mayors" in everyday usage. The city may or may not be divided into "city municipalities". Six cities, Belgrade, Novi Sad, Niš, Požarevac, Užice and Vranje comprise several municipalities, divided into urban and suburban areas. Competences of cities and their municipalities are divided. Of those, only Novi Sad did not undergo the full transformation, as the newly formed municipality of Petrovaradin exists only formally; thus, the City municipality of Novi Sad is largely equated to City of Novi Sad.
Subdivisions of Kosovo
Although the Serbian laws treat Kosovo as every other part of Serbia, and divide it into 5 districts, 28 municipalities and 1 city, the UNMIK administration adopted new territorial organisation of Kosovo in 2000. This move is not recognized by Serbia, but is recognized by the self-proclaimed Republic of Kosovo. According to the new subdivision, Kosovo is divided into 7 districts and 37 municipalities. The "Serb" districts function in the areas where Kosovo Serbs live, but are only recognized by Serbs, while the "UNMIK" districts, which function in all of Kosovo, are recognized only by Kosovo Albanians.