Special Districts

Special districts are independent local governments created to provide one or a few specific services within defined boundaries. The Census Bureau counted about 39,500 special district governments in 2022, making them the most common type of local government, out of roughly 90,000 local governments in all. They provide water and sewer service, fire protection, drainage and flood control, parks, libraries, hospitals, cemeteries, airports, ports, mass transit, housing, and even mosquito control.

States authorize special districts to deliver services across city and county lines, to serve unincorporated areas, or to finance projects outside general government debt and tax limits. They are typically governed by elected or appointed boards and funded through property taxes, user fees, and bonds. Large examples include the Metropolitan Water District of Southern California, created in 1928, and regional transit and port authorities. Some states, such as Illinois, California, and Texas, have thousands each, and their number has grown steadily since the mid-twentieth century.

Supporters say special districts allow services to be provided efficiently at the scale where problems occur, and let residents who benefit from a service pay for it. Critics call them shadow governments, noting that their elections often draw very low turnout, many voters do not know they exist, and overlapping districts make it hard to know who is responsible for what. Some states have tried to consolidate districts or require more transparency in their budgets and meetings.