The report covers two demonstration projects, testing transit fare prepayment (TFP) innovations in Austin, Texas, and Phoenix, Arizona. The innovations consisted of two consecutive sales of prepaid tickets and passes at discounts of 20% and 40%, accompanied by expansion of sales outlet networks and intensive advertising and promotional campaigns. The purpose of the demonstrations was to measure the impacts of these innovations on: (1) the volume and mix of sales of the various TFP instruments; (2) the transit-riding levels; and (3) the transit costs and operations. In addition, special attention was given to evaluating the relative cost-effectiveness of the special advertising and promotional campaigns conducted in both sites.