Ordered binary decision diagrams are an important data structure for the re
presentation of Boolean functions. Typically, the underlying Variable order
ing is used as an optimization parameter. When finite state machines are re
presented by OBDDs the state encoding can be used as an additional optimiza
tion parameter. In this paper, we analyze the influence of the state encodi
ng on the OBDD-representations of counter-type finite state machines. In pa
rticular, we prove lower bounds, derive exact sizes for important encodings
and construct a worst-case encoding which leads to exponential-size OBDDs.