Speaking at the inauguration ceremony at City Hall, where he was presented with a chain of office, Luzhkov pledged to continue working for the benefit of the Russian capital and its more than 10 million people.
"The growing potential of our citizens" is the basis for further development, Luzhkov said. "Feeling the city, lending an ear to people, governing with Muscovites are our main principles."
Luzhkov, 70, repeatedly accused of corruption and known for his outspoken anti-homosexual stance, has presided over an economic boom in Moscow, a city with an annual budget of 700 billion rubles ($27 billion).
Congratulating the mayor at the ceremony, President Vladimir Putin said he was guided by performance while selecting a candidate for mayor for the next term.
"The performance is obviously excellent," Putin said, adding that the capital has been growing 10% a year.
Moscow lawmakers approved Luzhkov's candidacy, nominated by the president June 22 with a 32-3 vote. The Moscow legislature has 35 members, including 28 members of the ruling Kremlin-backed United Russia party, co-led by the mayor.
Luzhkov is married with four children. His second wife, Yelena Baturina, is a businesswoman and Russia's only female billionaire.
