Knowledge is a category difficult to be defined precisely and simul-taneously it fulfils a key role in the management process and acquiring aims of an organisation. The theory of management devotes a lot of at-tention to knowledge management and realisation of benefits arising from it, noting down significant successes in this field, among others establishing principles of knowledge management. Territorial self-government units also belong to organisations. In their case a role of knowledge is particular and it is manifested in many aspects of per-formance. At the same time this performance, as subjects of administra-tion is regulated by law. Thus, it is interesting to inspect in which degree the legislator determined knowledge management in this type of or-ganisations. Therefore the article presents a notion and kinds of knowledge, a role of knowledge in territorial self-government units, legal regulation of using knowledge in these organisations, as well as postulates of changes in provisions in order to improve knowledge management in administration.
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