Widespread enthusiasm amongst Australian policy elites for structural reform in local government has evaporated as disappointing outcomes of council amalgamation programs became evident. As a consequence, emphasis has now shifted towards shared serviced models as a means of enhancing service provision and reducing costs. However, a disturbing feature of the current debate on shared services has been the absence of a wellarticulated economic and political rationale for this form of service delivery, a lack of analysis of alternative models of shared service provision and a neglect of available empirical evidence. This paper seeks to remedy these deficiencies by considering the analytical foundations of shared local services, conducting a review of alternative models as vehicles for shared services and evaluating available empirical evidence.