You get other issues, such as NIMBYs not allowing new development in their towns as a form of defecting in a prisoners dilemma, which you often need a larger re

You get other issues, such as NIMBYs not allowing new development in their towns as a form of defecting in a prisoners dilemma, which you often need a larger regional body to make it happen. Or other issues of too many small governments, such as road networks, or regional transit.