DURHAM County Council has been given the second best rating in the first independent assessment of council performance.
Audit Commission inspectors said the Labour-run authority was good - the other ratings are excellent, fair, weak and poor.
The council scored three - on a scale of one to four - for corporate management, use of resources, library, education and environmental services, and two for social services.
The council says its Comprehensive Performance Assessment rating compares favourably with other county and all-purpose authorities. Almost half are fair, weak or poor.
The commission said: "The council delivers a consistent level of quality local services.
It has a good record of achievement against a backdrop of significant economic change.
"The council has had notable success in the priority areas of educational attainment, economic development, looking after the environment and crime reduction and demonstrates strong ability to further improve local services.'' Council leader Ken Manton said: "In recent years we have changed the way the council works and we're very pleased with this positive endorsement of what we've done and what we are planning to do.''
The council undertook the biggest reclamation project by a county authority to tackle the dereliction left by the demise of mining and it was the driving force behind the award-winning Turning the Tide project to breathe new life into the coastline.
Cabinet member for the environment Bob Pendlebury said: "The result is a county where people are proud to live, others area pleased to visit and where businesses are keen to invest.''
The county boasts one of the country's highest level of public access to computers per head of population through its network of libraries, which includes the multi-million Durham Clayport Library in Durham City's Millenniun City complex.
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