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in the United States, urban unit of local government. A municipality is a political subdivision of a state within which a municipal corporation has been established to provide general local government for a specific population concentration in a defined area. A municipality may be designated as a city, borough, village, or town, except in the New England states, New York, and Wisconsin, where the name town signifies a subdivision of the county or state by area. The municipality is one of several basic types of local government, the others being counties, townships, school districts, and special districts