The aim of the article is to summarize the discussion on functioning of poviats in Poland, the genesis of their restitution in 1998, as well as the presentation of research results on the poviat administration effi ciency and eff ectiveness and the opinion of local government offi cials from Malopolska Voivodeship. In the discussion on the „poviat reform” prof. W. Kieżun referred to poviats as an example known in the theory of organization and management as the pathological phenomenon of „organizational fi ction.” He also pointed to insuffi cient equipment of the poviat administration in the tools (mainly fi nancial) necessary for independent functioning and development. After twenty years of functioning of poviat it seems to be reasonable to discuss its eff ectiveness, but also the sense of existence in its present shape. In the conclusions, possible directions of changes in territorial organization of Poland, which from the point of view of the eff ectiveness of development policy could be applied, are proposed.