An area lacking a municipal corporation is not governed by a local city or town. Instead, governance falls directly under the county or other larger administrative division of which it is a part. As an illustration, a cluster of homes and businesses outside the boundary of a formally recognized city, relying on the county for services like law enforcement and road maintenance, exemplifies this type of area.
The significance of these areas lies in their flexibility and potential for lower property taxes, due to the absence of municipal taxes. Historically, they have provided a haven for individuals and businesses seeking reduced regulation or a more rural lifestyle. The existence of these areas allows for diverse development patterns and can reflect a community’s preference for limited local government intervention.