Abstract
Recently in Japan, the public bus service which is organized and funded by residents or companies of an area has been increasing. This research aims to understand the local area participation in such schemes in accordance with the regional situation and examines the approach for spread of the scheme. The scheme has a possibility of self-funding and a flexibility dealing with the needs of passengers and residents. As an example the case of “Life-support bus YOKKAICHI” is investigated and analyzed with a view of establishment and management process. Next, the local public transport service is considered as a “club good” and the form of administrative organization for its provision is discussed. Even though this method has certain effectiveness, there are some problems in terms of its feasibility and sustainability. As a key issue, the cooperation and role sharing of the stakeholders involved is also discussed. Finally, the paper focus on the changes that the new local public transport system will have on the reform of legal system.