This casebook explores the unique roles that local governments play in the federal system and in providing local public goods. After considering the distinct characteristics of local governments, the book explores three relationships involving local governments: the relationship between the locality and the state (home rule and pre-emption), the relationship between the locality and its residents (service provision, revenue raising, economic development, local redistribution), and the relationship between the locality and neighboring localities (interlocal cooperation, interlocal conflict, and regional burden sharing). The new edition discusses state and federal responses to municipal fiscal distress, the role of mayors and city councils in municipal governance, and the development and implementation of zoning regulations.