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A township is an incorportated area or subdivision of a city, with businesses and residences with a small government leadership, usually contracts its services from the county or city and is not fully dependant on itself. A city is larger than a township that has its own full government and facilities to service and maintain the city. (Police, fire, schools, maintenance of streets, commerce etc.)
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"In the United States, an incorporated city is a legally defined government entity, with powers delegated by the state and county and created and approved by the voters of the city. It can provide local government services to its citizens. In most places in the U.S. a town, village, community, or neighborhood is simply an unincorporated community with no governmental powers. Usually, county governments provide services to these unincorporated communities. Some states do have official designations of "towns" that include limited powers. Generally in the urban heirarchy, villages are smaller than towns and towns are smaller than cities but each country has its own definition of a city and an urban area." Source: geography.about.com
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