A two-tier municipal system has two levels of local government: an upper-tier regional or county government and lower-tier local municipalities (cities, towns, townships) within it. Responsibilities are divided between tiers—upper tiers typically handle regional services like major roads, water/wastewater, policing, and social services, while lower tiers manage local roads, parks, recreation, and planning. Ontario has extensive two-tier systems including regional municipalities and counties. Two-tier systems enable regional coordination and economies of scale while preserving local identity and decision-making. Critics cite duplication, complexity, and confusion about which tier does what. Some regions have amalgamated to single-tier systems. Effective two-tier governance requires clear role definition and cooperation between tiers.