This study examines ways in which Australian governments, at national and state level, have developed policy responses to the issue of regional service delivery in the post new public management environment. It argues that new public management has changed many institutional arrangements in Australia and led to new public policy approaches based on those reforms. The study compares the approaches taken by federal and state governments in determining service levels for regional communities. The period under consideration is 1996-2001, coinciding first with the election of new NSW and federal governments and their subsequent re-election. Four cases studies are used to analyse a range of activities designed to provide services at local and regional levels, identifying key indicators of policy successes based on coordinated and integrated regional services combined with technology-based solutions that can be adapted to local community needs. The research draws on new governance theory and principles of effective coordination to propose a new model for determining appropriate service delivery. This model highlights the importance of local participation in decision-making, a regional planning focus, social and environmental sustainability, and the engagement of local communities as key determinants of regional policy success.