In Japan, as in other welfare states, the public demand for more and better services has been a driving force behind the post-World War II development of the public sector. Central government has been dependent on local authorities for the successful integration of state administration. In Japan, however, central authority has essentially sought this integration in an institutional setting of deconcentration. How have local authorities responded to central government’s initiatives in integrating state administration? Settsu City responded with the use of litigation to assert its rights vis-á-vis the central government. Why did Settsu City dare to sue the central government? In an attempt to answer this question, we will search for the major determinants, or causes, of this seemingly risky action by treating its municipal organisation, decisions, and politics as independent variables.