This Act provides for the establishment of Municipal corporations as legal entities with powers to forge partnerships between the Municipal Corporation, residents, businesses and industries for the effective development and governance of Bhutan's urban communities. The Act consists of 9 Parts divided into 126 sections, and of 1 Schedule.In particular, Part III deals with specific functions of the Municipal Corporation including land budgeting, drinking water supply, drainage and sewerage, land development schemes, cadastral surveys, land subdivision, etc. (sect. 49). Part IV defines Municipal boundaries. The registration of the ownership of land, subdivision, consolidation, transfer of land shall comply with the procedures adopted by the Municipal Corporation (sect. 69). Compensation for the acquisition of land is provided for in section 76. The revenues of the Municipal Corporation may consist of taxes, fees, charges, fines and penalties as specified in sections 93-100. Part VIII defines duties and functions of the Competent Authority.