Administrative capacity (AC) is a set of financial, human, institutional and material resources of an administrativeterritorial entity (ATE) necessary for efficient management and exertion of its authority. In the context of decentralization, AC is vital for every ATE and its consolidation is a major problem, especially for the Republic of Moldova. There are several ways of AC consolidation, including the paradigm of knowledge-based (or learning) organization (KBO), an open social system that fosters the capacity and aspiration of every and all of its members continuously to learn, experiment, and take acceptable risks at all managerial levels and in all subdivisions in order to anticipate and develop proactive response to permanent changes and challenges of the high-turbulent external environment, and to attain both organizational and personal objectives. Knowledge management (KM) and e-transformation are tools for transforming bureaucratic public authorities into KBOs.