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In this report, we draw several background pictures and discuss a number of scenarios around the challenges of the local government sector in Sweden. The ambition is to raise questions, but also to question certain accepted notions of the local government mission in Sweden. There are no easy answers on the challenges and consequences needed and there is a great need of more research in the field that both can stimulate with new angles and work as a relevant basis for decision-making. The report begins with a description of the demographic development that affects the sector from several important aspects such as investment needs, skills supply and revenue and cost development. Then there is a discussion on how the spread in conditions between local government organizations may affect equality and how these conditions can build a sustainable future local government structure.The sector has its own opportunities to meet future challenges through efficiencies. A lot of work is needed concerning management, governance and organization. The last chapter compiles several issues that requires further research.