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Knowledge management is a key element of any prosperous organisation. Under local government conditions, modern management trends are applied slowly and gradually. The aim of this article is to identify the current state of knowledge management as an instrument for increasing efficiency of municipality management in Slovakia. Focus is on the analysis of perception, application, and barriers of knowledge management. These issues are investigated on theoretical and practical level, with collection of data by the questionnaire method in selected municipalities in Slovakia. The result is that in the self-governments systematic knowledge management is still weak. Attention to this area of management is growing and various benefits have been declared, but there is a certain lack of knowledge in terms such as knowledge, information, data, etc., more precisely confusion with other concepts. There is a lack of emphasis on the sharing of knowledge while technological understanding of this concept is dominating.
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