Abstract. The development history of the neighborhood institution includes several stages. The neighborhood as a social structure has been a center of enlightenment in our country since ancient times, an effective form of the self-management system of citizens. Mahalla is a traditional social institution that organizes the life of society, reflecting the lifestyle, thinking and values of Eastern civilization, in particular, the peoples of Central Asia. The word "Mahalla" in Arabic means "residence", "neighbourhood", "part of the city".