This final report on southern American cities cites as its major recommendation the need for each southern State to have articulated urban policy. Findings are summarized in the areas of State urban policies, intergovernmental relationships, economic development policy, planning and growth policy, annexation policy, and energy policy. Background research covers the impact of annexation, and fiscal conditions and economic trends in southern cities. Recommendations for policy planning and implementation are made; a checklist of possible strategies for State intervention in urban economies is presented; and examples of improvement projects in southern cities are given. Eighteen tables and eight figures supplement this report with relevant statistical data. (JCD)