This report offers three broad suggestions for redefining how small town service delivery is examined. First, it uses a very broad definition of service delivery that encompasses revenue enhancement methods, expenditure reduction options, and innovative program arrangements. Second, it argues that three interrelated categories of research needs must be addressed: measurement of community management capacity, studies that inventory and assess intergovernmental responsibilities, and studies of the alternative financing and service delivery modes. Third, noting the lack of existing research, the paper argues for the implementation of limited or exploratory studies, especially those that examine several states comparatively. The report also offers guidelines for developing a research design using a simulated case study approach in which local officials are asked to explain their perceptions of the usefulness of various options, drawbacks to their use, and other relevant factors. Such case studies would address the relationships among existing management capacity, intergovernmental responsibilities, and alternative financing and service delivery options, and the methodology would allow for systematic data collection while capturing the uniqueness of governmental units. Topics are suggested for future research with a focus on service delivery and financing options, policy implementation, and local capacity-building. Citations for 108 references are included. (Author/NEC)