Establishment of municipalities

(1) There are the following categories of municipality: (a) Category A: A municipality that has exclusive municipal executive and legislative authority in its area. (b) Category B: A municipality that shares municipal executive and legislative authority in its area with a category C municipality within whose area it falls. (c) Category C: A municipality that has municipal executive and legislative authority in an area that includes more than one municipality. (2) National legislation must define the different types of municipality that may be established within each category. (3) National legislation must— (a) establish the criteria for determining when an area should have a single category A municipality or when it should have municipalities of both category B and category C; (b) establish criteria and procedures for the determination of municipal boundaries by an independent authority; and (c) subject to section 229, make provision for an appropriate division of powers and functions between municipalities when an area has municipalities of both category B and category C. A division of powers and functions between a category B municipality and a category C municipality may differ from the division of powers and functions between another category B municipality and that category C municipality. (4) The legislation referred to in subsection (3) must take into account the need to provide municipal services in an equitable and sustainable manner. (5) Provincial legislation must determine the different types of municipality to be established in the province. (6) Each provincial government must establish municipalities in its province in a manner consistent with the legislation enacted in terms of subsections (2) and (3) and, by legislative or other measures, must— (a) provide for the monitoring and support of local government in the province; and (b) promote the development of local government capacity to enable municipalities to perform their functions and manage their own affairs. (6A) ...... [Sub-s. (6A) inserted by s. 1 of the Constitution Third Amendment Act of 1998 and deleted by s. 2 of the Constitution Twelfth Amendment Act of 2005.] (7) The national government, subject to section 44, and the provincial governments have the legislative and executive authority to see to the effective performance by municipalities of their functions in respect of matters listed in Schedules 4 and 5, by regulating the exercise by municipalities of their executive authority referred to in section 156(1).