This article explores the changing relationship between the public and voluntary sectors. In 2007, a local government reform reduced the number of Danish municipalities from 271 to 98 and assigned new tasks to these. Consequently, the reform resulted in major local political and administrative changes, thereby giving a unique opportunity to examine how institutional changes affect the voluntary sector. Based on data from qualitative case studies and two questionnaire surveys (2004 and 2010) the article examines how the local government reform affects the relationship between the two sectors. The findings indicate that the political and administrative changes in the local political system have influenced municipality collaboration, contact and interaction with local associations. While some associations experience a decline in personal contact, there is an increase in formalization of the relationship and an increased degree of collaboration between the voluntary and public sectors.