The "observatoire des Territoires" was created by Decree No. 2004-967 of 7 September 2004.

The "observatoire" has three main missions :

 To gather, analyse and distribute information and data relating to the dynamics of local territories and their inequalities, as well as spatial planning and development policies.

 To provide a forum for State and local authorities to share experiences, which helps standardise methods of observation and analysis, combine knowledge and skills, and establish shared diagnostic terms for the evaluation of conditions in local territories.

 To encourage innovation and offer analytical solutions: the observatory organises a study and research programme, and contributes to the development of conceptual frameworks and effective tools for new requirements for making comparisons between local areas at the European and international levels.

It is also required to draft a report every three years for the Prime Minister, which is then presented to the Parliament.