This article analyzes the indicators of the methodology for the effective use of regional potential, which is taken as a basis at the legislative and regulatory level in the region. Improving the management process and effective use of regional potential is an urgent problem and is of interest for research. The hypothesis of the study lies in the methodology of the effectiveness of regional development at the level of municipalities and urban districts, where innovative development is weakly manifested, which can affect the gross regional product as the main indicator. The purpose of the study is to analyze the performance indicators in the use of regional potential and form an integrated approach to the effective use of the regional potential of municipalities and urban districts. The analysis of indicators of the effectiveness of the use of regional potential and additional factors reflecting aspects of innovative, socio-economic development, which are the basis of the gross regional product, reflecting the effectiveness of effective activities, was carried out. Approaches were formed using the following methods: an analytical review of theoretical integrated approaches was carried out; an algorithm for comparative analysis of the main indicators was carried out; some factors that have a significant impact on the formation of GDP were analyzed. Based on the results of the study, a broader integrated approach was proposed to reveal the essence of using the effective potential of the region, in particular, municipalities and urban districts. In modern conditions, economic entities are constantly transforming, which is due to many factors influencing the regions, which, under the load of the external environment, are also subject to transformation processes. The article presents a number of proposals for the effective use of the internal potential available in the regions in its development. Additions are proposed to improve the methodology for applying tools for measuring regional well-being, which provides a chance to more effectively use regional potential to align regions. The studies were carried out on the basis of official indicators of the Republic of Crimea, in particular, for municipalities and urban districts. The practical application of indicators and methodology for the effectiveness of regional development of municipalities and urban districts will improve the system of effective management of the region.