In 2014, Italian local government was affected by two key events: the passage of the Delrio law, which drastically reforms areabased government (i.e., provinces, municipal unions, and metropolitan cities) in the expectation that future constitutional reform will eliminate provinces entirely, and the rationalization program drawn up by Carlo Cottarelli, the special commissioner for the review of expenditure, which has profoundly affected the role of local authorities in owning and operating public utilities companies. This chapter traces the processes that led to these two reforms and, in doing so, elucidates the factors that motivated each reform.