In Latin America, the introduction of e-government has been a driving force in the development of Information Societies. As the citizen-government relation is often more intense at the local level, the digitization of information and communication processes in a municipality become a showcase for the demonstration of the opportunities and threats of a new technological paradigm. This study is based on a survey conducted among 106 Chilean and 77 Peruvian municipalities, investigating Information and Communication Technology (ICT) infrastructure, generic services in the front- and back-office of the local government, financing aspects, human capital development and requirements, regulatory frameworks and the identified objectives and obstacles of the transition towards digital municipalities. Characteristics and development patterns are identified in order to contribute to a better understanding of this key area of the Latin American Information Society.