This paper evaluates the effects of including transfers between service zones on overall service performance in a paratransit system. Transfers were included to improve the operational efficiency of a system when maintenance of a desirable zoning structure was obligatory. This proposed innovative service design was compared with more traditional cases of no transfer zoning and no zoning. A set of instances was generated from demand data obtained from the Metropolitan Transit Authority of Harris County, Texas, and evaluated through simulation analyses. The results demonstrated that under a zoning structure, this transfer design (in comparison with a nontransfer design) provided noticeable improvements in efficiency measures and better passenger trips per vehicle revenue hour while maintaining a minimum customer service standard; however, the overall performance of the no-zoning strategy used by the Houston, Texas, Metropolitan Transit Authority of Harris County performed the best, on average.