After introducing the main aspects of the Brazilian federation, this chapter describes the evolution of the country’s municipalities and presents their competences regarding public services provision according to the 1988 Constitution. It also analyses if rural and urban divisions of the local territory through perimeter laws play any role when it comes to the competences of local governments. Based on that, the chapter presents three basic models for public services provision, i.e. standalone provision by each local government, associated provision involving inter-municipal cooperation and regionalized provision. Additionally, it describes the types of contractual partnerships used in Brazil and their limits with regard to different types of services (divisible and individiable). In conclusion, it points out how regionalization policies and the recognition of asymmetries between local governments are important to help them overcome problems related to public service provision.