A voluminous empirical literature has focused on organizational characteristics and their relationship to organizational performance in the public sector, including municipal efficiency. However, as yet no effort has been made to examine the impact of administrative intensity on the effectiveness of local authorities, as measured by local resident satisfaction surveys. To address this gap in the literature, this article investigates the effect of administrative intensity on local resident satisfaction in the local government system of the Australian state of Victoria over the period 2014/2015 to 2018/2019. Using regression analysis, we find that there is a significant association between administrative intensity and the effectiveness of municipalities. However, the impact of administrative intensity on municipal effectiveness differs between urban local authorities and rural local authorities. This has significant public policy implications given that a uniform policy prescription may not achieve its intended aims due to the differential effects of the determinants of municipal effectiveness.