This paper examines the fiduciary or trust relationship that is created between the members of a First Nation band council and the band members. In particular, the discussion is concerned with the fact that as the local form of government, a First Nation band council is somewhat analogous in its composition and operation to that of a municipal council. The respective nature and scope of the fiduciary relationship that is created, both in reference to a First Nation band council and a municipal council, is then reviewed in detail. In terms of aboriginal self-government, the concept of this fiduciary relationship is significant, as the municipal model of self-government would appear to be the direction taken by First Nations' people in their quest for self-government. Given this fact, the discussion then identifies the inherent statutory inadequacies of such a form of self-government in failing to recognize and adequately address this fiduciary relationship. Due to this statutory failure, realization of a functional form of self-government by First Nations' people based upon a municipal format may be adversely compromised. Furthermore, despite the chosen model of aboriginal self-government, in order to ensure its continued viability, it is imperative that the governmental model adequately accommodate the issues posed by this fiduciary relationship.