||Local governments manage various investment projects which determine development potential and capabilities of both cities and enterprises. Managing in the twenty-first century is a great challenge for managers because of changing operating conditions, changing market economy as a whole, and economic recession. Therefore, investment management becomes so important, and the issue of making effective investment decisions becomes one of the most vital questions. The aim of the research is then recognizing and comparing the methods of the investment planning process and decision making in two local governments – Gdansk in Poland, and Edinburgh in United Kingdom. Planning, which contributes to decision-making, is the first function of management, which every organization must face and which is realized under certain conditions. The concept of deciding (synonymous with the concept of problem solving) involves a series of steps in addition to the act of choice itself, and goes beyond the definition of deciding in the strict sense. Deciding in the broad sense (sensu largo) include the analysis of policies, review and evaluation criteria for decision-making, the use of selected criteria and finally a choice based on the course of action. The research covers these aspects. The research uses the following methods: analysis of the literature, analysis and logical design. Research tools include, in particular: observation, survey and interview. Survey covers two selected local governments. The pool research and interviews have been addressed to directors (general managers) responsible for investment management. Interviewees have answered the questions, which focus on: organisation of investment management, investment strategy, investment management and decision-making in investment management. The project limitation is connected with selected local governments, therefore results cannot be transferred to general economy, however the research can be useful for public investment managers and private investors, too. The research results can improve communication, raise efficiency, precision and common approval of the process within public administration and in public-private cooperation.