Reuse Partitioning (RP) is a simple technique that can be used to increase the capacity of a cellular system. With RP, a cell is divided into several concentric regions, each associated with a different cluster size. In this paper, a Markov chain model is developed to evaluate the call blocking probability, Pb, of the basic (no channel rearrangement) n-region RP using fixed channel allocation (FCA). Channel rearrangements are introduced to further improve the capacity. For a certain RP scheme with multiple channel rearrangements (MCR), Pb is shown to have a known product-form solution. It is found that a single channel rearrangement scheme performs almost as well as the MCR scheme. One advantage of MCR is that it reduces the difference in Pb experienced by calls in the different regions. It is shown that the capacity with two-region (four-region) RP with MCR is about 25% (45%) higher than that of a conventional FCA system. The effect of moving users on call blocking and dropping probabilities is also examined.