Gram panchayats are local self-governments at the village or small town level in India. As of 2002 there were about 265,000 gram panchayats in India. The gram panchayat is the foundation of the Panchayat System. A gram panchayat can be set up in villages with minimum population of 300. Sometimes two or more villages are clubbed together to form group-gram panchayat when the population of the individual villages is less than 300.