Using data from 1176 Italian municipalities in 2005, we identify factors associated with the development of e-government services supplied by local public administrations (PAs). We show that the combination of internal competencies and context-specific factors is different when explaining decisions to start e-government activities vs. the intensity of such activities. Municipalities involved in e-government are larger, carry out more in-house ICT activities and are more likely to have intranet infrastructures than PAs that do not offer front-office digitized services. They are also generally located in regions having relatively large shares of firms using or producing ICTs, where many other municipalities offer digitized services, and where population density is relatively low. The range and quality of e-government services supplied by local PAs tend to increase with their stock of ICT competencies, their efforts to train workers, and with their ability to organise efficient interfaces with end-users. Moreover, there is a correlation between the range and quality of e-government services offered and the broadband infrastructure development in the area where local PAs are located.