The 1972 Montana Constitution required the legislature to "...provide procedures requiring each local government unit or combination of units to review its structure and submit one alternative form of government to the qualified electors ... " by 1976. The 1974 legislature accordingly established the nine-member State Commission on Local Government. Harold Gerke chaired the Commission, and George Boulisman was the director until July 1974 when Dale Harris assumed that position. In its three year existence the Commission was required to: make a detailed study of local government structure, powers, services, and finances, and state-local relations; prepare a revised code of local government law; consult and assist local government study commissions; publicize the voter review of local government; and publish reports and make recommendations to the governor and legislature. The legislature concurrently funded community education projects to be carried out by such bodies as the University of Montana's Bureau of Government Research, Montana State University's Cooperative Extension Service, the Montana Chamber of Commerce, and the League of Women Voters of Montana.

One hundred eighty-two city, town, and county local government study commissions, consisting of at least three unpaid members were elected in nonpartisan elections held in November 1974. These commissions conducted reviews of their local governments and drew up proposals for alternative forms of government which were voted on in 1976. The amount of time and effort invested by each commission in this work varied widely.