Chapter 5 explores the local demand for state and local debt in Mexico, focusing on empirical evaluations of states and large cities/metropolitan areas before and after regulatory reforms. Specifically, the chapter examines efforts by municipal governments to access the Mexican bond market for financing various projects. Utilizing the method of similar cases, the research analyzes states with high economic indicators and shared characteristics, such as Nuevo Leon, Guanajuato, State of Mexico, and Mexico City. It investigates state investment plans, capital budgets, and municipal budgets, shedding light on limiting factors for sustainable infrastructure projects. Through interviews with finance ministers and analyses of political ideologies, the chapter uncovers the intricate interplay between policy frameworks, political shifts, and financial strategies in the realm of municipal bond markets.