This article examines the inefficacy of the present legal form of loca
l government in the US, This inefficacy manifests itself by providing
no solid legal mooring for the power of local government while contrib
uting to regional economic inequalities, In an attempt to address this
problem, the author suggests realigning local government to the neigh
bourhood level while constructing a new tier of government to mitigate
the negative economic consequences of such realignment.