The city of Indore had its first municipality in 1870. In the year 1956, it was declared as a Municipal Corporation and is currently governed by the Madhya Pradesh Municipal Corporation Act, 1956. The Indore Municipal Corporation (IMC) is divided into 14 Zones (2010, update in 2011) administered by two functional bodies namely Political Wing (deliberative) and Executive Wing. Indore has a much narrow taxation base and the municipal financial situation is not strong in the city. With most of the industries located outside the city limits, the IMC has not been able to balance the operating and management costs of most services. Despite its current size, the IMC is not able to generate excess revenue to invest in infrastructure. This has led to the city administration highly dependent on the state and central administration for new investments.
Indore Development Authority was formed in 1973 under the Town and Country Planning Act of the state (1973) to assist the municipal body in its developmental activities. Primarily IDA develops new residential areas and basic infrastructure. Once a sizeable number of plots are sold, the area is formally handed over to IMC to administer. IDA is also involved in infrastructural development schemes such as construction of major roads, traffic squares, public gardens, lakes, etc.
Surat Municipal Corporation is a local self government which came into being under the provisions of the Bombay Provincial Municipal Act, 1949 carries out all the obligatory & discretionary functions prescribed thereunder. In Surat, there are two main local Governing bodies namely, Surat Municipal Corporation (SMC), Surat Urban Development Authority (SUDA). The Hazira Notified Area Authority, governs the adjoining industrial hub of Hazira. Approximately 326 sq.km of the city comes under the jurisdiction of SMC with an estimated population of 4.5 million (2010). SUDA covers the SMC and an additional peripheral areas totaling 722 sq.km.