Improvement of services is one of the principal objectives of reforms introduced into local governments, although this objective does not always guide the formulation of the contents of these reforms. A more rigorous analysis of the implications of service improvement should concentrate on local public goods, on their nature and, above all, on their supply and production—aspects hitherto only slightly developed. To start, one can try to infer certain local institutional characteristics which would be the most suitable for the purpose of service improvement. Certain authors who adopt this course anticipate a quasi-market model for local government services. A critical examination of this model shows that it is no longer suitable and that a preferable model is one which we can call “community co-responsibility.”