According to the Organic Law of Regional Governments, the regions (Spanish: regiones) are, with the departments, the first-level administrative subdivisions of Peru. Since its 1821 independence, Peru had been divided into departments (departamentos) but faced the problem of increasing centralization of political and economic power in its capital, Lima.
After several unsuccessful regionalization attempts, the national government decided to temporarily provide the departments (including the Constitutional Province of Callao) with regional governments until the conformation of regions according to the Organic Law of Regional Governments which says that two or more departments should merge to conform a region. This situation turned the departments into de facto regional government circumscriptions. The first regional governments were elected on November 20, 2002.
Under the new arrangement, the 24 departments plus the Callao Province are regional government circumscriptions each with a Regional Government. Lima Province, which has been excluded from this process and is not part of a regional government circumscription, has its government institution: the Metropolitan Municipality of Lima.
Unlike the previous system, the regional circumscriptions have an elected government and have a wide array of responsibilities within their jurisdiction. Under the 2002 Organic Law of Regional Governments (Spanish: Ley Orgánica de Gobiernos Regionales), there is an ongoing process of transfer of functions from the central government to the regions. A 2005 referendum for the merger of several departments failed to get the necessary electoral support.