Governments around the world attempt to modernize public administration through e-Government. Nevertheless, the evolution of e- government practices reveal a clear division in the use of IT between the developed and the developing countries, as well as between central administration and local administration authorities. Concerning the specific characteristics of local authorities, like municipalities, this paper presents a new, web-based, open source e-government system for such organizations. The design and specifications of system's components were based on the specific needs of some municipalities in Crete. Moreover, the pilot implementation and evaluation at the municipality of Souda revealed important aspects that are critical for the success of local e-government systems.