A Japanese political scientist specializing in the former Soviet republics examines the system of regions taking shape within Lithuania. Driven in part by EU accession requirements, the current system is compared with the Soviet past and with that of Russia, Poland, and the Czech Republic. The paper, based substantially on field work in 2001, argues that emergence of the country's most recognizable and operational regions, second-tier municipalities, has bolstered the competitive character of Lithuanian politics. A detailed analysis of elections of deputies to municipal councils, and subsequent election of mayors to head those councils, demonstrates patterns of coalition building designed to maintain a power balance among local party organizations. Three case studies demonstrate divergent contexts within which a national trend-the rise and fall of Lithuania's bipolar party system-is played out.