One of the fundamental state policies enshrined in the Constitution is the autonomy of local government units (Const., Art. II, Sec. 25). In this regard, the Constitution mandated Congress to "enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization with effective mechanisms of recall, initiative, and referendum, allocate among the different local government units their powers, responsibilities, and resources, and provide for the qualifications, election, appointment and removal, term, salaries, powers and functions and duties of local officials, and all other matters relating to the organization and operation of the local units." (Const., Art. X, Sec. 1)

Pursuant to this mandate, Congress enacted Republic Act no. 7160 otherwise known as the Local Government Code of 1991 on October 10, 1991.

In order to commemorate the passage of the Code, Presidential Proclamation No. 63 was issued to declare the month of October of every year as Local Government Month, the second week of October as the Local Government Week, and the 10th of October as the Local Government Day.

As the Code reaches its 25th year of implementation, the DILG celebrates the journey of the local governance and builds on its recent progress to guide and transform LGUs as able instruments of good governance in shifting towards federalism.

In order to make the commemoration memorable, the DILG has encouraged all LGUs to:
 Release press statements about their notable achievements for being: a) business-friendly and competitive; b) socially-protective and safe; c) disaster-resilient and climate change adaptive;

 Participate in activities that may be convened by the DILG at the Central, Regional and Provincial Offices and other partners and development partners; and

 Openly promote LGU achievements to other government agencies, development partners, local media and the public in activities during the Local Government Code anniversary celebration.

The national grand celebration of the LG Code Anniversary is happening on October 27, 2016 with the theme, "LGC @ 25: Pagsulong, Progreso, Pagbabago".

After 25 years of local autonomy, DILG celebrates the significant breakthroughs such as the provision of awards and incentive program to performing local governments. Among these are the Seal of Good Local Governance (SGLG) and Lupong Tagapamayapa Incentives and Awards (LTIA).

With incentives, funding and technical supports from the DILG, LGUs are able to come up with projects like water supply, schools, roads, tourism facilities and others which have greatly benefited the ordinary Juan and Juana.

In order to scale up the capacities of LGUs, the DILG will come up with a roadmap and is continuously scaling up standards to guide LGUs to perform better in the delivery of basic services.

The challenge is on how to sustain the gains of LGUs and let them be ready for change (Pagbabago).

President Rodrigo R. Duterte mandated DILG to undertake a nationwide information and campaign on federalism in partnerships with various alliances and with LGUs, CSOs, grassroots and faith-based organizations.

For its initial actions, the DILG has forged agreements in September 2016 with the People's National Movement for Federalism (PeNAMFed) and other various partners such as academes and CSOs to start the advocacy on the shift to federalism.

It has also created the DILG Task Force on Federalism thru the issuance of Department Order No. 2016-639. The team is tasked to study and advocate among LGUs the concept of federalism as a way to ease their transition towards change.
To LGUs:
As the country plans to veer towards federalism, LGU must be actively engaged in forums, conventions, and similar activities to arm them with the right knowledge and attitude in the event of change of government.

To the general public:
The public must also participate in government activities and projects in their localities regarding federalism. They need to be informed on various advocacy campaigns and initiatives about this form of government and how it will affect their communities and families.