The article presents the analysis of the political situation in the Nizhny Novgorod province after the February revolution. Having studied the archival sources and works by Russian history specialists, dedicated to the consideration of this period the author examined social and political developments of local government after the fall of the tsarist regime and the efforts to strengthen the new power represented by the Provisional government. The author revealed the scheme of formation of local government, the main principles of organization and the mechanism of creation of peasant committees in the Nizhny Novgorod province in the absence of a unified system of election. The main emphasis is laid on the study of economic and political functions of the peasant committees which were democratic bodies of peasants’ self-governance. The author examined the role and importance of the peasant committees in the process of resolving the main social and economic contradictions of the early twentieth century-peasants’ struggle for the right of land ownership. This area was not thoroughly examined in earlier research by Soviet authors. The investigation of role and value of peasant committees permits to make an estimation of masses creative work and to understand the depth and complexity of local government institutions organization in the extreme situation.