Australian local government has been subjected to extensive reform during t
he 1990s. This article considers the three main dimensions of the reforms -
changes to management structures, the introduction of competition policy,
and municipal consolidation. It reviews the evidence available about the na
ture of outcomes and examines the impact of the reforms on governance value
s. It is argued that, so far economic considerations have been balanced by
a commitment to community particpation. Recent political developments, howe
ver, may yet prove to be an emerging threat.