Legally, Finland has two levels of democratic government: the state, and 432 municipalities. The municipality is the same as a "city" level of government, except that rural municipalities are not called "cities". Since 1977, no legal or administrative distinction is made between towns, cities and other municipalities. Although a municipality must follow the laws set by the state, it makes independent decisions. That is, the decisions of a municipal council, if legal, cannot be appealed. People often identify with their municipality, although their nationality is usually more important.

Municipalities co-operate in 74 sub-regions and 20 regions. These are governed by the member municipalities. The Åland region has a permanent, democratically elected regional council, as a part of the autonomy. In the Kainuu region, there is a pilot project underway, with similar regional elections.

The state organization is divided into 6 administrative provinces. The provinces are further divided into 90 state local districts. The provincial authority is part of the executive branch of the national government, and is not democratically controlled except through the national parliament. This system was created in 1634, and underwent few major changes until the re division of the country into "greater provinces" in 1997.

1. Southern Finland
2. Western Finland
3. Eastern Finland
4. Oulu
5. Lapland
6. Åland

These provinces are merely administrative divisions. Western Finland, for example, spans four major linguistic and dialectal areas (Ostrobothnian dialects, Southwestern dialects, Savo in mid east, and some Swedish speakers in the area around Vaasa).

The Åland Islands enjoy a degree of autonomy. According to international treaties and Finnish laws, the regional government for Åland handles some matters which belong to the province authority in Mainland Finland.

Another kind of provinces are those echoing the pattern of colonization of Finland. Dialects, folklore, customs, and people's feeling of affiliation are associated with these historical provinces of Finland, although the re-settlement of 420,000 Karelians during World War II and urbanization in the latter half of the 20th century have made differences less pronounced.

The old provinces or counties (1634-1997) survive in the telephone numbering areas.

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