Citizen demand for efficient government often drives state agencies to seek out opportunities to deliver traditional services in non-traditional ways. Engaging in cross-boundary collaboration can be a way for states to leverage costs while providing citizens with streamlined services. Such collaboration is inevitable for state CIOs and this brief, a product of NASCIO’s Cross-Boundary Collaboration Committee, explores the unique challenges and opportunities of cross-boundary collaboration between state and local government entities. Highlighting successful examples of state-local collaborations already underway, this brief features the governance and financial models that were utilized for these collaborations. In addition, this brief examines the unique challenges facing state-local challenges and explores the ways in which states and localities can work together to achieve success and to lay the groundwork for future collaborative efforts.