There are 10 municipalities in Estonia with fewer than 5,000 inhabitants. These municipalities have become very small over the last 20 years. For example, Rõuge municipality has lost over 1,900 residents. Setomaa municipality has lost over 1,000 residents.
Some small municipalities are growing. For example, Nõo municipality near Tartu. More young families live there. The population has increased on islands like Muhu and Vormsi.
Rõuge municipality is trying to attract more residents. They pay more money for new children. In 2017, many municipalities merged. Then there were 79 municipalities left. Most recently, Jõhvi and Toila municipalities merged in 2025.
The government recommends small municipalities to merge. But some municipalities do not want to do this. They want to decide for themselves. The government gives them more money and freedom.
The population of Setomaa municipality is declining. Few children are born there, and many people die. The border location makes it even harder. People are afraid to live near the Russian border. This also affects tourism.
Setomaa municipality does a lot to preserve its culture. They organize events and help young people. They give money to businesses so people don't have to travel far for work.
The population of Muhu municipality is growing. Many people buy summer homes and stay to live. They have a good school and services. Muhu residents are happy with their living place.
Muhu municipality gets money mainly from income tax. The state gives them little money. But they manage to cope.
Setomaa and Muhu municipalities do not want to merge with other municipalities. Setomaa wants to preserve its Seto culture. Muhu residents love their small municipality. They want everything to be close and simple.