This chapter deals with the equalization mechanisms established in Italy to address horizontal imbalances among local entities, paying particular attention to inter-municipal redistribution schemes, emphasizing differences between urban and rural local governments. The strong constitutional asymmetry characterizing the regional scenario and the overall system of territorial organization is, among other things, also reflected in the system of local finance and, as such, in the related equalization schemes. Thus, this chapter first explores the local financing system in the ordinary regions, which is characterized by a high degree of centralization, paying special attention to the Municipal Solidarity Fund. It then deals with the special regions, that have their own systems of inter-municipal equalization. Finally, it also covers equalization in provinces and metropolitan cities.