Public Transport Authorities (PTAs) are well-established in large urban areas. These dedicated authorities act in the public interest to ensure that a well-functioning, integrated transport system operates within their territory. Within Europe, economic pressures and changes in regulation to encourage more competition are providing the catalyst for municipalities/authorities of all sizes to review the structure under which transport is managed and provided in their jurisdictions and to consider the suitability of establishing a PTA. Based on findings from case studies in eight small and medium urban areas across seven European countries, it is clear that although user needs remain at the center of the actions of a PTA, the level of functionality provided by metropolitan PTAs would not be suitable or possible for a PTA in a small- or medium-size urban area. This paper presents a summary model of the functions/responsibilities and guidelines on the organizational structure that are most suitable for PTAs in small and medium urban areas in Europe.