This Act is enacted in accordance with Article 118 of the Constitution of the Republic of China and Paragraph 1, Article 9 of the Additional Articles of the Constitution of the Republic of China.
Local governments shall comply with the provisions of this Act. Matters not provided for hereunder shall be governed by other applicable laws.

The terms used in this Act are defined as follows:
1. Local self-governing body: A legal entity that carries out local self-government in accordance with this Act. The Provincial Government is a branch of the Executive Yuan and there are no province-level local self-governing bodies.
2. Self-government matters: Matters for which local self-governing bodies may independently formulate and implement legislation, in accordance with the Constitution and provisions of this Act, and matters over which such bodies hold legal jurisdiction and for which such bodies formulate and implement policy.
3. Commissioned matters: Matters that are outside the jurisdiction of a local self-governing body that are carried out by the aforementioned body under the direction and supervision of a higher level of government, in accordance with law and with regulations and guidelines from higher levels of government.
4. To approve: A higher level of government or a competent authority reviews and makes a determination on a report submitted by a subordinate government or agency, so as to render the matter legally valid.
5. To submit for recordation: A subordinate government authority or agency, acting in the capacity prescribed by law, concludes a matter over which it exercises full authority and submits a report to a higher level of government or a competent authority.
6. To be dismissed: A civil servant is dismissed in accordance with the Public Functionaries Discipline Act, or a public official is recalled in accordance with the Public Officials Election and Recall Act, or has been relieved of their authority or removed from their position in accordance with this Act.

Local governments are subdivided into provinces and special municipalities.
Provinces are subdivided into counties and cities (hereafter referred to as counties/cities); counties are subdivided into townships, and county-administered cities (hereafter referred to as townships/cities).
Special municipalities and cities are subdivided into districts.
Townships, county-administered cities, and districts are subdivided into villages. Villages are subdivided into neighborhoods.

A region with a population of one million and two hundred fifty thousand (1,250,000) or greater that has special requirements for its political, economic, cultural, and metropolitan development may establish a special municipality.
Articles 34, 54, 55, 62, 66, 67, and other provisions relevant to special municipalities shall apply mutatis mutandis to counties with populations of two million (2,000,000) or greater that have not yet changed into special municipalities.
A region with a population from five hundred thousand (500,000) to not more than one million and two hundred fifty thousand (1,250,000) that occupies a major political, economic, and cultural role may establish a city.
A region with a population from one hundred thousand (100,000) to not more than five hundred thousand (500,000) that possesses thriving industrial and commercial development, adequate financial resources for local self-government, convenient transportation, and comprehensive public facilities may establish a county-administered city.
Paragraphs 1, 3 and 4 shall not apply to special municipalities, cities, and county-administered cities established prior to the promulgation of this Act.

Provinces shall establish a provincial government and provincial consultative council.
Special municipalities shall establish councils and governments of the special municipality; counties/cities shall establish county/city councils and governments; townships/cities shall establish township/city councils and offices; these are the legislative and administrative bodies, respectively, of special municipalities, counties/cities, and townships/cities.
Districts in special municipalities and cities shall have district offices.
Villages shall have village offices.

Names of existing provinces, special municipalities, counties/cities, townships/cities, districts, and villages shall be retained.
Changes to the aforementioned names shall be carried out in accordance with the following provisions:
1. Provinces: The Ministry of the Interior shall submit the proposed changes to the Executive Yuan for approval.
2. Special municipalities: The government of the special municipality shall submit the proposed changes to the council of the special municipality for adoption, after which such changes shall be submitted to the Executive Yuan for approval.
3. Counties/cities: The county/city government shall submit the proposed changes to the county/city council for adoption, after which the Ministry of the Interior shall submit such changes to the Executive Yuan for approval.
4. Townships/cities and villages: The township/city office shall submit the proposed changes to the township/city council for adoption, after which such changes shall be submitted to the county government for approval.
5. Districts and villages in special municipalities or cities: The government of the special municipality or city government shall submit the proposed changes to the council of the special municipality or city council for approval.
The preceding paragraph shall apply mutatis mutandis to townships that are compliant with Paragraph 4 of Article 4 and changes into county-administered cities.

The establishment, abolition, or adjustment of provinces, special municipalities, counties/cities, townships/cities, and districts shall be carried out in accordance with law.
Counties/cities shall be changed into special municipalities or merged with other county/city administrative districts or special municipalities in accordance with this Act.
Regulations governing the organization of and adjustment to villages and neighborhoods shall be separately formulated by the special municipalities and counties/cities.

In line with the need for sensible national land planning and balanced development of different regions, when the Ministry of the Interior plans to change a county/city into a special municipality or to form a new special municipality by merging a county/city with other counties/cities or special municipalities input shall be solicited from the governments of the relevant special municipalities and counties/cities prior to submitting the plan to the Executive Yuan for approval.
When a county/city is to be changed into a special municipality, the county/city government shall formulate the plan for the change. After approval by the county/city council, the Ministry of the Interior shall submit the plan to the Executive Yuan for approval.
When a special municipality is to be formed by merging a county/city with other counties/cities or special municipalities, the governments of the aforementioned entities shall jointly formulate a plan for the merger; after receiving approval from the councils of the counties/cities and special municipalities, the plan shall be submitted by the Ministry of the Interior to the Executive Yuan for approval.
The Executive Yuan shall make a decision within six (6) months of receipt of such plans from the Ministry of the Interior.
The Ministry of the Interior shall announce both the plan and the timetable for such changes within thirty (30) days from the day after the date of receipt of the official letter of approval from the Executive Yuan.

The aforementioned plans for changing a county/city into a special municipality shall indicate the following:
1. The name of the new special municipality.
2. Any historical developments.
3. The scope, population, and areas of the administrative districts before and after the change into a special municipality.
4. The name, population and areas of townships/cities and villages changed into districts and villages before and after the change.
5. The boundaries on a topographic map of the administrative regions before and after the change and the results of joint inspections of the boundaries.
6. The result of the assessment of the impact of the change on local politics, finance, economics, culture, urban development, and transportation.
7. The location of the council of the special municipality and government of the special municipality after the change.
8. The plans of the relevant agencies (institutions) and schools of the former special municipalities, counties/cities, townships/cities and districts with regard to changes in organizational structure, professional reorganization, re-allocation of personnel, transfer of assets, and compliance with self-government laws and regulations.
9. The guidelines of the relevant agencies (institutions) and schools of the former special municipalities, counties/cities, townships/cities and districts with regard to budget formulation and implementation after the change.
10. Other issues relevant to the change in status.

The administrative districts of special municipalities formed in accordance with Article 7-1 shall be consolidated in accordance with the provisions of relevant laws and regulations.