The study analyzed political development on reserves as a continuing process of adaptation, whereby a political system responds to its environment in terms of equality (expanding participation and local self-government), capacity (expanding the scope of local policy-making and administration), and differentiation (the local involvement in separate executive, legislative, and administrative structures). Existing patterns of reserve government and political life and the importance of cultural and historical factors were also examined. Data were obtained via a literature review of various research studies of political development, an analysis of the Indian Act (revised in 1951), and case studies. Some findings were: (1) residents of Canadian reserves were making progress as far as participation in local government was concerned; (2) the scope of local decision-making had increased in recent years through grants-to-bands, community development, and other programs; and (3) reserve residents were denied a basic political right (local self-government) available to other citizens. (NQ)