This article explores the perceptions of economic development decision makers regarding regional economic development competition and cooperation. This research contributes to an understanding of the interlocal cooperative interactions that exist between and among local governments and to an understanding of what the obstacles are to cooperative efforts. The author uses a qualitative approach utilizing in-depth interviews of participants within a 14-county central region of Illinois. This setting encompasses both small and moderate-sized cities and both urban and rural areas. The findings suggest that although communities participate in cooperative efforts, understand the benefits of cooperation, and express a willingness to cooperate in regional economic development efforts, the obstacles to cooperation continue to curtail cooperative efforts. State policies and support for cooperation could lessen the impact of some of these obstacles to cooperative regional economic development efforts.