This chapter focuses on local economic development zones, which exist at the intersection of sublocal governance and local economic development. They typically transfer fiscal, political, and administrative authority from the general-purpose government to hyper-localized areas within the municipality. Local economic development zones are sustained by a guaranteed stream of revenue, possess continuous and well-defined boundaries, and engage in hyper-localized economic development. These kinds of zones epitomize some of the most innovative financing and governing approaches to targeted economic development. They also raise concerns about accountability, intra-municipal fragmentation, and disparities and the limits of spatially targeted economic development approaches.