A religious authority leads the government in a theocracy. The leader gains his power from his creator and supreme being, gods and goddesses, or supernatural forces. In an absolute theocracy, the leader has direct contact with a divine being.
Theocracies have been present in all geographical locations of the world throughout history. In modern times, the best example of a theocratic government is the government of the Vatican. The Vatican is a sovereign state led entirely by the Catholic Church. The main leader is the Pope. He has direct knowledge of the will of God, according to Catholics. Another example includes Iran, where Islamic clerics lead the government.