This study summarizes the theory and the available evidence on the effects of size on the responsiveness and efficiency of local government. For each of four important sections of the California Code bearing on the structure and authority of cities and school districts, the study summarizes (1) the primary provisions of the present Code, (2) some recent experience illustrating the effects of the Code, and (3) suggested changes in the Code. Major findings indicate that student performance is either unrelated or negatively related to the size of the school district. It is suggested that voters in a community within an existing local government should have the right to form a new unit of government, subject only to a substantial consensus within the community and protection of the legitimate rights of other affected parties. It is also suggested that parents should have the authority to enroll their child in any district in the State, subject only to the approval of school officials in the attending district. (Author/DN)