The chapter addresses the provision of public services in Germany by the local government in cooperation with private individuals. After analyzing the legal framework for public enterprises on the federal, state and local level, it highlights the specific challenges this instrument faces in urban and especially in rural areas. Additionally, the importance of public private partnerships (PPPs) as well as administrative concessions and their respective legal challenges are being addressed. While the usage of PPPs seems to be preferred in urban areas, municipalities in rural areas predominantly refer to concession contracts which the authors attribute to their comparatively less complex legal structure.