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Mexico approved a major constitutional reform in 2014 which created a system of gender quotas for municipal executive elections. We exploit variation across states in the electoral calendar to analyze the extent to which this reform impacted the probability of female municipal presidents being elected. Using a differences-in-differences methodology, we show that parity rules had immediate significant positive effects; moreover, our further analyses demonstrate that the effects are lasting. However, full parity is not reached as political parties use strategies such as nominating more women in losing districts. We also explore whether this new legal environment affected various measures of municipal spending and tax collection. We find that the parity rules are associated with more fiscally conservative municipal budgeting. This is consistent with the entry of fiscally conservative women after the introduction of the gender parity rules, which could be explained by parties with fiscally liberal views nominating women relatively more often prior to the reform.