The referendum is one of the oldest forms of direct democracy and it began to be used at the end of the 18th century. The referendum was said to be a redundant institute due to its negative features, primarily when used for political purposes. The use of the referendum as an institute and its incorporation into the legal system of states became more frequent after the Second World War ended and new states and state communities were created. In the Republic of Croatia the institute of a referendum forms a constitutional category, since general issues are regulated by the highest legal act. More detailed elaboration is given in the Law on referendum and other forms of personal participation in the performance of state duties and local and regional self-government duties. Three state referendums and ten local referendums have been conducted so far in the Republic of Croatia. On a global level it is worth mentioning that the institute of a referendum is most common in Europe and North America. These two continents have the longest democratic tradition, so this is simply a logical sequence of that. The types of referendums, the issues that it decides, as well as the preconditions for initiating one vary from state to state, and as the most prominent example of a country with a long tradition of direct decision-making of citizens is Switzerland by all means.