Urban creativity is currently the focus of theoretical and practical research and can contribute to the understanding of local government modus operandi and in particular to its effective management. The study focuses on Shoham and Holon, both defined by the Ministry of the Interior as successful municipalities. It examines the creativity of the municipality distinguishing between effective management, which emphasizes internal processes within the municipality, and democratic openness, which emphasizes the interaction between the municipality and the environment as well as increasing local capital resources.