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Scholars have long debated the rise of states in the midst of powerful cities. In this work I examine the bargain present between cities and states empirically, regardless of municipal size, for the first time. I present a new dataset on historical municipal policy in the present-day United Kingdom and France, and use a dynamic Bayesian IRT model to estimate the ideal points of all municipalities claimed by the state in what are presently the United Kingdom and France. I use this evidence to argue that the bargain that rulers made with cities in order to secure political legitimacy had lasting implications on the political economy of the territorial state.