Department for Territorial development was established in 2006 resulting from the transformation of the Department for Municipal Development that dealt with providing direct support for local self-governments in the process of establishing stable mechanisms for implementation of local economic development concept.

Local economic development is the process aimed to increase employment and to increase per capita income on the target territory. Local economic development is possible only through the cooperation of private and public sector. The process requires resources and continuous strategic planning with all of its accompanying stages.

Department for Territorial development was created within the organizational structure of Regional Economic Development Agency for Šumadija and Pomoravlje as a more comprehensive form of the concept that initially focused solely on economic development as an essential aspect for any territory and it includes basic elements of support for a contemporary, comprehensive concept of sustainable development of local-self-government units and related region.

With the aim to offer a quality and more comprehensive answers to the requirements of the process of sustainable development implementation on the territory of Šumadija and Pomoravlje the Department for Territorial Development has been created with the following sectors:

• Sector for Strategic Planning
• Rural Development Sector
• Sector for Management of Development Funds and
• Sector for Infrastructure and Environment Protection.

Sectors of the Department for Territorial Development are organized and synchronized in realization of defined plans based on the principles of continuous enhancement of sustainability concept and its integration in all spheres of activity of local self-government units and other stakeholders on local and regional level.