Japanese society is facing an aging and shrinking population. Rapid aging of the population resulting from the decline in the birth rate was predicted in the early 1960s, but the Japanese government and society could not take effective action at the time. The aging and shrinking population is now forcing municipalities to review their public facilities. Municipalities must continually control public facilities efficiently and support construction freeze. Additionally, municipalities should renovate some public facilities or rebuild them as needed. The Ministry of Internal Affairs and Communications proposes a praise-worthy public facility management guideline for local government. Municipalities, however, need to make a fairly accurate prediction about future population and the amount of renovating and building costs. Facility management will become a crucial matter for municipalities in Japan. Of course, all this is very easy to say and a lot harder to do. Municipalities have to make every effort to start coping with the shrinking population and create a rational program for reducing useless facilities as well.