Importance The research analyzes the legislative framework for strategic development of areas in Russia, methods to review localities, foreign experience in articulating spatial development strategies, and comparative analysis of approaches to setting up strategies of municipalities. Objectives The research provides our own method to analyze localities through the comprehensive use of the existing databases as a phase when the municipality’s strategy is formulated. We also analyze the existing approaches to formulating localities’ strategies in Russia and abroad. Methods The methodological framework includes methods of systems analysis, economic and statistical analysis, aggregation and decomposition, methods for evaluation of municipal product. The research draws upon data of the Russian State Statistics Service, regional and municipal executive bodies of the Voronezh oblast, municipal information system of localities Volost'. Results The article presents an algorithm of the method to analyze municipalities through the comprehensive use of the existing information sources and comparative analysis of approaches to setting up a strategy. Conclusions We conclude that the evaluation of localities’ municipal product plays an important role in the method as its phase, and its use will increase the quality of analytical processes when strategic documents are prepared, and reasonableness of decisions concerning socio-economic development of municipalities and the region as a whole. If local population takes an active part in the process and local authorities have relevant power, it will significantly influence projects for spatial transformation in the long-run.
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