This chapter presents an overview of the macroeconomic landscape of the municipal bond market in Mexico, examining its size, intergovernmental relations, and the substantial increases in subnational debt and inflation from 2001 to 2024. It explores the governmental structure’s evolution from centralized to decentralized authority, facilitated by historic decentralization reforms. Additionally, the chapter discusses the regulatory environment’s impact on the growth of the municipal bond market and describes four categories of authorized subnational government loans. Finally, it outlines Mexico’s Public Financing Options for Sustainable Infrastructure, highlighting initiatives aligned with Sustainable Development Goals (SDGs) and exemplified through a case study of Mexico City.