This article empirically examines the current stages of development of e-government adoption in U.S. local governments; a two-stage model of e-government growth is applied. Stage I is the cataloging of information online and Stage II the completion of transactions online. This article empirically derives and tests indices of the development of local governments in these stages along with the e-government relationships being either Government to Citizen (G2C), Government to Business (G2B), or Government to Government (G2G). This two-stage model is applied to data from an e-government survey. Some of the results indicate that local governments in Stage II (transaction phase) have the following attributes: a council-manager form of government, located in the Western U.S., having populations greater than 250,000, having separate IT departments, and benefit from e-government in, for example, reducing administrative costs. Barriers such as privacy and security limit e-government growth.