As one type of transportation governance model, subregional governance of bus services intends to improve customer responsiveness and cost effectiveness of bus service provision, with economic, political, and operational impacts. This article compares merits and demerits of three alternatives of subregional governance: transferring bus services to local municipal operators, transferring bus services to local transportation zones, and reorganizing transit operations into bus service sectors. Los Angeles County’s Foothill Transit, is an example of a successful local transportation zone. Authorities are now in the process of creating bus service sectors. While a promising venture, the system is still in its infancy and lacks actual performance data. Though an optimal subregional governance model fitting every circumstance does not exist, a mixed alternative balancing regional interests and local interests, and reconciling the conflicts among different governance models seems feasible.