Local self-government units have a key role in managing the utility sector, and are responsible for providing various utility services at the local level. The communal economy encompasses diverse activities aimed at meeting the needs of citizens. It is extremely important to adhere to the principles of accessibility, quality, ecological sustainability and social responsibility when performing communal activities. This approach ensures efficient and sustainable management of resources and improves the quality of life of citizens. Legal regulations that are important in the field of communal economy cover a wide range of topics, such as communal economy, roads, waste management, construction, cemeteries, funeral services, construction inspection, state inspectorate, public procurement and water. Numerous laws and ordinances provide a legal framework for regulating and supervising various aspects of the communal economy in order to ensure efficient management, environmental protection, quality of service, financial stability, i.e. to achieve effective management and sustainable development of the communal sector. In other words, legal regulation has a fundamental role in regulating the communal sector and ensuring quality services for the entire local community. Special emphasis in the paper is placed on the Law on Waste Management as well as on the fact that the countries of the European Union are aware of the importance of disposal and sorting of waste. Special emphasis is placed on the city of Ljubljana, whose government has solved the problem of waste separation excellently. (