Abstract: This paper provides: • A brief overview of the part of economic theory relevant to understanding the relationship between the consumption of government services and economic development. • A discussion, based on economic theory, of the issues relating to the development of a demand responsive service delivery model for settlements. • A bibliography with brief descriptions of published material that could help researchers who are developing a demand responsive model of service delivery. The task of considering the development of a demand responsive service delivery model can be divided into two parts. The first is to establish that the consumption of the services being discussed is important for economic development. If it is important, then the second issue is to decide which model of service delivery is the best; if not, the optimal mode of delivery is of little importance. Section 2 discusses the first issue and concludes that services are important to development. Section 3 discusses the efficacy of a demand responsive – or near market – mode of delivery of services to settlements. The services being discussed here are the standard services that are normally provided to settlements by governments or settlement organisations. They include services in the areas of education and training, health, housing, electricity, water and sewerage, town maintenance, and law and order.