This chapter explores the development and operation of regional clusters (Eshkolot) as a significant form of horizontal intergovernmental coordination in Israel. Established as a response to failed attempts at merging local authorities, regional clusters represent a shift towards collaborative governance and spatial planning, in line with New Public Governance paradigms. Comprised of voluntary partnerships among neighboring municipalities, these clusters enhance regional planning, resource pooling, and service delivery. The chapter discusses the political and administrative dynamics within regional clusters, emphasizing their role in fostering regional development while highlighting the challenges of maintaining effective coordination in a centralized governmental context. The analysis also considers the impact of recent political trends and the potential for regional clusters to strengthen local governance amidst ongoing national tensions. Despite their promise, the clusters face limitations, particularly in their engagement with central government, business sectors, and civil society. The chapter concludes by reflecting on the future of regional governance in Israel, stressing the need for further decentralization, enhanced cooperation, and the development of unique organizational cultures to support sustainable regional collaboration.