As traditional methods of municipal solid waste management (MSWM) become increasingly expensive due to increased regulation, many local governments are considering cooperation as a waste management strategy. A theoretical model is used to specify a partial observability probability model to analyze the decision Tennessee counties made to form either a single-county solid waste region or a multi-county region. We find that, while economies of scale may be a factor in the consolidation decision, similarities and differences between counties in current individual provision levels of solid waste services, ability to pay for services, and expectations for future solid waste service demands are statistically more important.