The process of urban segregation seems to have intensified in recent years, and there is a growing awareness of the problems of these neighbourhoods by the public in general and local authorities in particular. In this report, the Steering Committee on Local and Regional Democracy (CDLR) examines the state of neighbourhood services in two types of area: disavantaged urban areas (DUAs) and areas with low population density. The report presents a range of local government initiatives and examples of good practice, and offers guidelines for further action in this field.