By a decision of the Government of the Nagorno Karabakh Republic, the first local self-government election was held on September 27, 1998.

The election was conducted in accordance with the NKR Law on the Local Self-Government Elections. Pursuant to a decision of the Central Electoral Commission, 8 Regional (municipal) and 233 Precinct Electoral Commissions were formed.
414 candidates for heads of communities and 1,350 candidates for members of town council were self-nominated.
As a result of the voting, 195 heads of communities and 1,248 members of town council were elected in the republic.