An inter-local service agreement is a contract between two or more municipalities to share services or resources. Rather than each community building its own facilities or hiring separate staff, neighbouring municipalities might share fire protection, water treatment, recreation centres, or administrative services. These agreements reduce costs through economies of scale while maintaining local control over service levels. Provincial legislation typically authorizes such arrangements. Inter-local agreements are particularly valuable for smaller municipalities that cannot afford specialized services independently, allowing them to provide residents with services comparable to larger communities.