The term "makhalla" comes from the Arabic "mahal", "mahallatun", which means "community". For the first time a word occurs in the product Nar-shahi "History of Bukhara”. For many centuries makhalla formed and kept spiritual and moral foundations of the bonds Uzbek people, its culture, traditions, customs.

From the first years of independence, the government pays great attention to development the system of makhalla. It was created by the decree of the President of Uzbekistan I.A.Karimov the welfare fund "Makhalla", which contributed to further enhance the status of makhalla as a traditional democratic institution. Today makhalla is great strength, which is important to skillfully directed to the solution of problems for building a civil society.

Makhalla is characterized by its uniqueness and originality inherent in Uzbek statehood. The main feature of this institution is the closest to the population with signs of direct democracy.

Makhalla is recognized as one of the most important institutions of civil society and the most unique element of the national system of public administration. The number of makhalla makes up more than 10 thousand. The state have paid a lot of attention to decentralization of governance, delegating the part of functions from republican level to the bodies of regional, city and district levels, and makhalla.

The legal framework of self-governance was enshrined in Article 105 of the Constitution, which set out that “residents of settlements, kishlaks and auls (villages), as well as of residential neighbourhoods (makhallas) in cities, towns, settlements and villages shall decide all local matters at general meetings. These local self-governing bodies shall elect Chairman (aksakal) and his advisers for a term of 2.5 years. The procedure for elections, organization of the work and the powers of self-governing bodies shall be specified by law”.

The Law of the Republic of Uzbekistan “On the citizens’ self-governance bodies” was adopted 2 September 1993. Then the law was passed in the new edition of 14 April 1999. It has also been amended in 2003 and 2004. The main content to improve this legislation is a logical extension of authority makhalla.

According to the Law "On elections of chairman of citizens' (elder) and his advisers", the elections are based on principles of equity, universal, equal and direct suffrage by secret or open ballot.

Makhalla can provide financial support to socially vulnerable among its residents. Here makhalla has shown its important role in helping the state to carry out targeted assistance to people. Like no other social institution, makhalla can help the state to provide targeted assistance to address citizens in need, to ensure fairness in this matter. It hears the reports of the heads of local executive authorities and heads of business entities operating in makhalla on their activities relating to the essential interests of its inhabitants. Makhalla provides recommendations for weddings and other events. It approves the action plans for improving human settlements and improving health.

Makhalla has played an indispensable role in the transmission of traditions, which represents a cultural and spiritual heritage of people. Therefore, makhalla is a traditional institute of management at the local level of public administration and is an important social institution in promoting the interests of rights, and support in carrying out democratic reforms