A township is a "body corporate," with powers and immunities as provided by law. (Article VII § 17 of Michigan Constitution of 1963) Townships are local governmental units with the power to tax, expend public monies for public purposes, and to adopt local laws (ordinances) to regulate the public health, safety and welfare, as well as land uses. 

The township system was established in the Midwest by Congress in the Northwest Ordinance of 1787. As early as 1790, Michigan land descriptions, using the rectangular (acreage) system, were beginning to divide the territory into 36-square-mile "survey townships."

Township governments soon followed as local townships were incorporated by special acts of the territorial and state Legislatures starting in the early 1800s. The political boundaries of individual townships usually corresponded with the underlying survey township, but geographic obstacles and subsequent boundary changes also contributed to the variety of other township shapes and sizes.

The earliest recorded township incorporations were in 1827 (prior to Michigan statehood in 1837), when at least 33 townships were formed in several counties across what is now Michigan, Ohio and Wisconsin (before the "Toledo War" of 1835-1836).

Originally, townships were the mechanism for exercising state authority by administering elections, assessing and tax collecting, and justice on the local level.

Villages and cities were incorporated from townships to provide additional local services for population centers, with cities becoming a separate local government for all purposes, and villages remaining a part of the township jurisdiction for some purposes. In the late 1800s, laws were adopted that authorized cities and villages to incorporate by law without legislative action, and annexation became an option for the first time.

But with the growth of suburban residential populations in townships in the mid-20th Century, townships were also given statutory authority to provide typical municipal services. The Charter Township Act was adopted in 1947 to give larger townships additional authority and some protection from annexation (MCL 42.34).

While annexation had previously been a streamlined mechanism for residents to form their own communities without legislative involvement, it now created a tension between built-out cities, looking to fund their residents' services by adding territory open to development and increased tax revenues, and less developed townships, seeking to preserve their tax base (and often their rural character) to serve their residents' needs.

In some states, cities may still annex adjacent territory from a township (or county in states without townships) simply by resolution following public notice. But the Michigan Legislature rejected that approach in 1968 when it established the State Boundary Commission and additional rules for the annexation process in the State Boundary Commission Act, Public Act 191 of 1968, MCL 123.1001, et seq.

Public Act 425 of 1984 authorized local units to negotiate contracts ("425 agreements") for temporary or permanent conditional transfer of land, including shared tax revenues, facilities and services. While many 425 agreements result in permanent transfer of territory, the transfer can take place over many years, without the abrupt loss of revenues or territory of annexation. Not all 425 agreements end in annexation.

There are a number of ways a township's boundaries might change permanently, including losing territory by annexation, gaining territory by detachment of territory from a city or village, incorporation as a city or village, or consolidation of two or more townships into one larger township.

Townships, cities and villages have become almost indistinguishable in the early 21st Century. Over 50% of Michigan's population resides in townships. Michigan's economic struggles have required state, county, city, township and village officials to reevaluate local boundaries and cooperate to share costs and coordinate services. But concerns about annexation of township territory still color efforts to collaborate.

MTA's Policy Platform states: 

5.6 ANNEXATION/DETACHMENT

Current annexation laws are archaic and favor cities and villages when attempts are made to annex property from townships. The annexation process fails to recognize the ability of townships to provide sewer, water and other services necessary for economic development. These annexation laws unfairly prohibit a right-ofreferendum when less than 100 people reside within the area proposed to be annexed.

Further, PA 425 of 1984, the “Conditional Land Transfer Act,” permits two or more local units to enter into an agreement to conditionally transfer property for a period of years for the purpose of economic development projects. Yet, in recent years, the State Boundary Commission has been involved in determining the validity of Act 425 agreements, contiguity and contract participants.

MTA supports:

• legislation that encourages better long-term relations among local governments by making cities and townships equal in all matters related to boundary adjustments;

• legislation that prohibits a city from denying sewer or water services as leverage for annexation or an Act 425 agreement;

• legislation that would prohibit annexation petitions filed against charter townships on areas where services as described in MCL 42.34 of the Charter Township Act are provided by the township;

• a right-of-referendum of all electors in townships affected by a proposed annexation; and

• legislation to clarify that the State Boundary Commission has no authority to determine validity of Act 425 agreements.