Federacija Bosne i Hercegovine se sastoji od federalnih jedinica – kantona, u okviru kojih postoje općina i grad kao jedinice lokalne samouprave. Općina Busovača je jedna od dvanaest općina koje se nalaze u sastavu Srednjobosanskog kantona/Kantona Središnja Bosna, čije je sjedište u Travniku.

Ustavom Federacije Bosne i Hercegovine globalno su utvrđena prava i dužnosti općina kao jedinica lokalne samouprave, prema kojem općina:                                                                                                                                                                                                                              -poduzima sve potrebne mjere u cilju osiguranja osnovnih ljudskih prava  i sloboda,                                                                                                        -vodi računa o nacionalnoj strukturi u općini,neposredno obnaša poslove lokalne samouprave,                                                                                      -obnaša upravne i druge poslove  koje Federacija BiH i kanton prenesu  ma općinu iz određenih upravnih oblasti. 

Zakonom o principima lokalne samouprave reguliran je samoupravni djelokrugopćine koji se odnosi na:                                                                         -osiguranje i zaštita ljudskih prava i sloboda,                                                                                                                                                                    -donošenje općinskog proračuna,                                                                                                                                                                                     -donošenje programa i planova razvitka i stvaranje uvjeta za gospodarski razvitak i zapošljavanje,                                                                                 -utvrđivanje i provođenje politike uređenja prostora i zaštite okoliša,                                                                                                                                 -donošenje urbanističkih, prostornih i provedbenih planova, uključujući zoniranje,                                                                                                            -utvrđivanje politike korištenja i utvrđivanje visine naknade za korištenje javnih dobara,                                                                                                   -utvrđivanje i vođenje politike raspolaganja, korištenja i upravljanja građevnim zemljištem,                                                                                               -utvrđivanje politike upravljanja i raspolaganja imovinom općine,                                                                                                                                      -utvrđivanje politike upravljanja prirodnim resursima i raspodjele sredstava ostvarenih na temelju njihovog korištenja,                                                     -upravljanje, financiranje i unapređenje djelatnosti i objekata lokalne komunalne infrastrukture,                                                                                         -vodosnabdijevanje, odvođenje i prerada otpadnih voda,                                                                                                                                                -prikupljanje i odlaganje krutog otpada,                                                                                                                                                                             -održavanje javne čistoće,                                                                                                                                                                                                -gradska groblja,                                                                                                                                                                                                               -lokalni putovi i mostovi,                                                                                                                                                                                                     -ulična rasvjeta,                                                                                                                                                                                                                 -javna parkirališta,                                                                                                                                                                                                             -parkovi,                                                                                                                                                                                                                           -organiziranje i unapređenje lokalnog javnog prijevoza,                                                                                                                                                   -utvrđivanje politike predškolskog odgoja, unapređenje mreže ustanova, te upravljanje i financiranje javnih ustanova predškolskog odgoja,                                                                                                                                                                                                                              -osnivanje, upravljanje, unapređenje i financiranje ustanova i izgradnja objekata  za zadovoljavanje potreba stanovništva u oblasti kulture i športa,                                                                                                                                                                                                                               -ocjenjivanje rada ustanova i kvalitete usluga u djelatnosti zdravstva, socijalne zaštite, prosvjete, kulture i športa, te osiguranje financijskih sredstava za unapređenje njihovog rada i kvalitete usluga sukladno potrebama stanovništva i mogućnostima Općine,                                                                          -analiza stanja javnog reda i mira, sigurnosti ljudi i imovine, te predlaganje mjera prema nadležnim organima za ova pitanja,                                          -organiziranje, provođenje i odgovornost za mjere zaštite i spašavanja ljudi i materijalnih dobara od elementarnih nepogoda i prirodnih katastrofa,                                                                                                                                                                                                                          -uspostavljanje i vršenje inspekcijskog nadzora nad izvršavanjem  propisa iz vlastitih nadležnosti Općine,                                                                       -donošenje propisa o porezima, naknadama, doprinosima i taksama iz nadležnosti Općine,                                                                                             -raspisivanje referenduma za područje Općine,                                                                                                                                                                -raspisivanje javnog zajma i odlučivanje o zaduženju Općine,                                                                                                                                          -poduzimanje mjera za osiguranje higijene i zdravlja,                                                                                                                                                        -osiguranje uvjeta rada lokalnih radio i TV postaja sukladno zakonskim propisima,                                                                                                           -osiguranje i vođenje evidencija o osobnim stanjima građana i biračkih spiskova,                                                                                                             -poslovi iz oblasti premjera i katastra zemljišta i evidencija o nekretninama,                                                                                                                       -organiziranje efikasne lokalne uprave prilagođene lokalnim potrebama,                                                                                                                          -uspostavljanje organizacije lokalne samouprave,                                                                                                                                                             -zaštita životinja.

Općina Busovača ima svojstvo pravnog lica. Statut općine, koji je usklađen sa odredbama Ustava Federacije BiH i Ustava Srednjobosanskog kantona/Kantona Središnja Bosna, donosi Općinsko vijeće dvotrećinskom većinom glasova svih vijećnika.

Statutom općine se uređuju slijedeća pitanja:                                                                                                                                                                     -samoupravni djelokrug Općine,                                                                                                                                                                                       -općinska tijela i njihovi međusobni odnosi,                                                                                                                                                                        -mjesna samouprava,                                                                                                                                                                                                       -sudjelovanje građana u odlučivanju, financiranje i imovina Općine kao jedinice lokalne samouprave,                                                                             -propisi i drugi akti,                                                                                                                                                                                                            -javnost rada,                                                                                                                                                                                                                    -suradnja jedinica lokalne samouprave,                                                                                                                                                                            -odnosi i suradnja sa federalnim i kantonalnim vlastima,                                                                                                                                                    -druga pitanja od značaja za rad i ustrojstvo Općine Busovača.