This analysis explores the options for a theoretical model to guide regional collaboration by local governments that is both politically feasible and consistent with core public administration values. The analysis first examines the research on the adoption, implementation and performance of political consolidation. We then examine the theory and research that underlie functional consolidation and assess both types in lieu of the values of public administration. We find that local government managers and elected officials need a theoretical model for regional collaboration that addresses a key obstacle to service consolidation among local governments: the perceived loss of political power and control associated with consolidation efforts. We suggest multilevel governance theory and the concept of shared sovereignty offer an approach to regional problems with an eye to the political as well as administrative issues, and with instruments that promote core public administration values. The concept of shared sovereignty that underpins the regional collaboration of the countries in Europe has both descriptive and predictive theoretical potential as a multilevel governance theory. The EU functions from a web of interlaced, interdependent agreements to share sovereignty in ways that manage political issues, economic factors, and administrative values, and in a fashion aligned with core PA values in the US.