A local government prevents any firm from competing with a natural monopoly firm. Those people who believe this is a wise policy action would likely say this is a desirable state of affairs since if competition is allowed, the natural monopoly firm will out compete all newcomers and in the end the newcomers will go out of business. the public doesn't want more than one company to produce certain goods that it buys. the first company that provides a certain good to the public should have the right to produce that good without competition from others. if competition is allowed, no firm in the industry will be able to earn profits.