In many countries of the European Union the system of Local Government is highly fragmented and characterized by the prevalence of small municipalities. By allowing the sharing of resources within an aggregation of municipalities, inter-municipal cooperation could be a solution for some of the problems related to administrative fragmentation. In the paper, after considering the conditions that make the sharing of different types of resources feasible, the concept of cooperability will be introduced in order to describe the non technical aspects of interoperability. Finally, it will be shown how an aggregation of cooperable Local Government organizations can carry out a process of virtual integration among the partners that can help reduce the fragmentation of the system of Local Government without resorting to a forced merger of municipalities.