BELIEVING THAT THE PLANNING OF MUNICIPAL SERVICE DELIVERY SYSTEMS REQUIRES ACCURATE FORECASTS OF DEMAND, PARTICULARLY REGARDING THE EFFECTS THE QUALITY OF SERVICE HAS ON DEMAND, A METHODOLOGY FOR DOING THIS IS DEVELOPED, WITH THE FOLLOWING CHARACTERISTICS; IT SHOULD BE LOW-COST AND USE GENERALLY AVAILABLE DATA; BE BASED ON USER BEHAVIOR, AND ALLOW FOR TRANSFERABILITY OF RESULTS. USING ECONOMETRIC ANALYSIS OF DATA EMPIRICAL TESTS OF THE METHODOLOTY WERE PERFORMED FOR TWO LOCAL GOVERNMENT SERVICES SELECTED BECAUSE OF THE IMPORTANCE OF THE EFFECT OF SERVICE QUALITY ON DEMAND. THE FIRST CASE STUDY EXAMINES THE EFFECT OF LARGE-SCALE HIGHWAY AND SEWER INVESTMENTS ON RESIDENTIAL DEVELOPMENT OVER A 10-YEAR PERIOD TO ILLUSTRATE THE LONG-TERM FORECASTING APPLICATION OF THE METHODOLOGY IN RELATING DEMAND FOR HOUSING TO THE QUALITY OF SERVICE PROVIDED. THE SECOND CASE STUDY RELATES THE LEVEL OF SERVICE IN SOLID WASTE COLLECTION TO THE QUANTITY COLLECTED, AND ANALYZES THE DIVERSION OF WASTE TO OTHER METHODS OF DISPOSAL, SUCH AS RECYCLING AND LITTERING, THUS ILLUSTRATING THE USE OF THE METHODOLOGY IN MEASUREING A SHORT-TERM, LOCALIZED EFFECT ON THE DEMAND PATTERNS EXPECTED FROM A POLICY CHANGE IN AN ALREADY OPERATING SERVICE. THE TWO CASE STUDIES AND OTHER ANALYSES ARE BELIEVED TO SHOW THAT THE METHODOLOGY IS A USEFUL TOOL FOR INITIAL ANALYSIS OF THE EFFECTS OF LEVEL OF SERVICE ON DEMAND. WHILE MORE DETAILED DEMAND MODELING WOULD BE NECESSARY TO DEVELOP FORECASTS USEFUL FOR PROJECT DESIGN, THE DEMONSTRATION AND SCREENING PHASE DEVELOPED IN THIS REPORT CAN SUGGEST WHERE DETAILED ANALYSIS SHOULD BE DONE FOR PLANNING, AS WELL AS INDICATE WHERE RESEARCH INTO THE UNDERLYING CAUSES OF DEMAND WILL HAVE IMPORTANT RESULTS FOR POLICY ANALYSIS. TABLES OF DATA AND RESULTS FROM THE CASE STUDIES ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED-RCB)