Abstract The last decades of the 20 century witnessed a profound experiment to increase the role of markets in local government service delivery. However, that experiment has failed to deliver adequately on efficiency, equity or voice criteria. This has led to reversals. But this de-privatization process is not a return to the direct public monopoly,delivery model of old. Instead it heralds the emergence,of a new balanced position which combines use of markets, deliberation and planning to reach decisions which may be both efficient and more socially optimal. Contact Information: Mildred E. Warner Associate Professor Director of Graduate Studies Department of City and Regional Planning 215 W. Sibley Hall, Cornell University Ithaca, NY 14853-6701 U.S.A. 607-255-6816, 607-255-1971 (fax) mew15@cornell.edu http://government.cce.cornell.edu