Whanganui mayor Hamish McDouall says the two-year government review into the future of local government will find major systemic issues but local decisions should continue to be made locally.
Councils could face major changes to their role, structure and financing following the review, which will begin this week.
Local Government Minister Nanaia Mahuta said the review would shape the next generation of local government.
The review will consider what local governments do and how they pay for their duties.