Despite the ambitious reforms executed from the 80’s aimed at increasing the political, fiscal and administrative independence of Colombia’s sub-national entities (municipalities and departments), there has been a reversal in the decentralization process in the country that manifests itself most clearly in the fiscal area. In addition to redesign the fiscal structure in order to empower municipalities and departments, the country can address this decentralization crisis by considering two sets of policy actions. The first one is the implementation of the notion of “territorial peace” which is one of the key components of the peace agreement with Farc. This notion emphasizes bottom-up initiatives as well as citizen’s participation in the development of the reforms and policies proposed by the agreement itself. The second relates to the re-thinking of the territorial organization of Colombia, as it requires a differentiated approach according to the conditions and realities of the territorial entities.