This chapter lays down the principles of co-operative government. It states that there is one central government that is divided into three spheres: national, provincial and local. Each sphere is autonomous, and all three spheres have to work together. Previously, the government was organised in such a manner that allocated whole functions of power to one level of government, which was unwise, as other levels of government may have wanted to have a say. 

Overall the Constitution gives the three different levels of government common areas of responsibility but also defines their distinct responsibilities. Chapter 3 provides that the different levels of government have to work together and coordinate things such as budgets, policies and activities, particularly those that cut across all the spheres. Particularly, chapter 3 states that all spheres of government must-

• Keep the peace and national unity of South Africa 
• Look after the well-being of the people of South Africa
• Be effective, transparent and accountable to the Republic as a whole
• Be loyal to the Constitution and to South Africa 
• Respect the status, institutions, powers and functions of government in other areas 
• Not take on powers that the Constitution does not give them  
• Use their powers and perform their functions in a way that does not interfere with government in another area 
• Cooperate with each other by assisting, supporting, consulting with each other on things of common interest