A locality existing outside the boundaries of a legally defined municipal corporation, such as a city or town, lacks its own municipal government. Governance and services are generally provided by a higher-level administrative division, most commonly a county. For example, a settled area might rely on the county for law enforcement, road maintenance, and zoning regulations, instead of having its own police department, public works, or planning commission.
This organizational structure can offer residents reduced property taxes, as they are not contributing to the costs of a separate municipal administration. Historically, these areas often developed due to resource extraction, agricultural activities, or as transportation hubs. The absence of municipal regulations can also foster a more laissez-faire environment, attractive to individuals or businesses seeking fewer bureaucratic constraints. Furthermore, this structure can be advantageous for those who prefer limited governmental intervention in local affairs.