Considerable pessimism has been expressed recently about the long-term fiscal problems facing the major metropolitan areas of the U.S., in particular the central cities. However, recent demographic trends and interregional migration patterns suggest that a more optimistic scenario may be in store. A new climate may be developing for intrametropolitan fiscal cooperation, especially in the newer and fast-growing SMSA's. This conclusion is based on several interrelated events: (1) the common fiscal and socio-economic histories of cities and suburbs in the growing regions of the country; (2) the increased concern for tax equity on the part of the more revenue-elastic state governments; (3) the pursuit within many states of a more progressive public expenditure structure with respect to human services.