Municipal elections that were held on 5 December 2000 ushered in a developmental system of local government, with specific political, economic and social challenges. This first democratic term of municipal councils was based on newly developed local government legislation, and reduced the number of councillors from approximately 12 000 to approximately 9 000. The system was unique, in that it provided for, amongst other things, the designation of certain full-time councillors, and also introduced the office of Speaker. The roles and responsibilities of councillors were clearly stated in law, and this distinguished the envisaged functions for councillors from their former ceremonial duties. Based on recommendations made by the Independent Commission for the Remuneration of Public Office-bearers, the Minister for Provincial and Local Government introduced a remuneration system to coincide with the new term of municipal councils. However, due to certain shortcomings in the newly introduced system, stakeholders expressed their misgivings with the remuneration dispensation that was introduced. This study investigates the evolution of local government in South Africa, and then elaborates on recent advancements made in this regard. The study shows how the roles and responsibilities of councillors evolved. More specifically, it initially attempts to identify relevant provisions that deal with the remuneration of all public officebearers, and then focuses on the remuneration for members of municipal councils. Due to the constantly changing provisions relating to the remuneration of councillors, this study examines all interventions made by government until 14 November 2005, when the Minister for Provincial and Local Government published the upper limits of remuneration to be paid to councillors in terms of the relevant provisions in the Remuneration of Public Office Bearers Act, 1998 (Act No. 20 of 1998). It would be most feasible to implement the recommendations made in this dissertation with effect from the date of commencement of the financial year for municipalities during the second term of municipal councils, in terms of section 64 of the Local Government: Municipal Electoral Act, 2000 (Act No. 27 of 2000). Additional information available on a CD stored at the Merensky Library / Thesis (PhD (Public Affairs))--University of Pretoria, 2008. / School of Public Management and Administration (SPMA) / unrestricted