The Internet provides a powerful tool for reinventing local governments. It encourages transformation from the traditional bureaucratic paradigm, which emphasizes standardization, departmentalization, and operational cost-efficiency, to the “e-government” paradigm, which emphasizes coordinated network building, external collaboration, and customer services. Based on a content analysis of city Web sites and a survey of Web development officials, this article shows that many cities are already moving toward this new paradigm. These cities have adopted “onestop shopping” and customer-oriented principles in Web design, and they emphasize external collaboration and networking in the development process rather than technocracy. The article also analyzes the socioeconomic and organizational factors that are related to cities' progressiveness in Web development and highlights future challenges in reinventing government through Internet technology.