Organizational complexity is a distinguishing characteristic of local governance in America's urban areas. Organizationally complex arrangements among jurisdictions, agencies, and private for-profit and not-for-profit organizations are frequently involved in the production and delivery of local public goods and services in the United States. In this dissertation study the author seeks useful explanations regarding emergence, operation and consequences of organizational complexity found in local public economies in the United States. The study draws on the author's professional practice and researcher experience and organizational theory to develop a conceptual platform for better understanding local public sector organizational complexity. The conceptual platform is operationalized through an analytic framework designed for study of hybrid organization in local governance. The study uses drug courts in a multi-site empirical test application of the analytic framework. Finally, the results of the study, conclusions drawn and implications for public administration and policy theory, research, education and practice are offered.