In the new administrative political organization which was represented by the Spanish State of Self-Governing regions, Madrid gave rise to serious problems of location. Several alternatives were suggested, ranging from membership of the Community of Castile-La Mancha to the present Autonomous Community, and including a proposal for a special regime for the capital and metropolitan area.

On June 25th, 1981, the Provincial Council finally agreed to start off the autonomy process for the province under the procedure set out in Article 143 of the Constitution. After its ratification by Congress, the new Statute of Autonomy came into force on Marcha 1st, 1983.

The Community of Madrid was set up as an Autonomous Community under Organioc Law 3/1983, February 25th (BOE 1.3.83).