In 1589, the Sejm of the Commonwealth of the Two Nations established the royal holdings (Crown lands), called Economijas, of Šiauliai, Hrodna, Alytus, Brest, Kobrin and Mahilioŭ in the Grand Duchy of Lithuania. However, Šiauliai started to function as a royal Economija only in 1619. At this time, it was the largest and richest royal holding in the grand duchy. The article deals with the relatively closed community of the Šiauliai Economija in the second half of the 17th century. Its unusual administrative system, with its relatively abundant community records, makes it possible to trace and discuss the following issues: how the local government had functioned and how it maintained relations with the community; how the local community and individual members used and dealt with decisions by the Lithuanian central government; what rules of communication applied between different actors, the Lithuanian central government, the Šiauliai Economija government, and the local community.