<P> Local government in Australia is the third tier of government in Australia administered by the states and territories, which in turn are beneath the federal tier . Local government is not mentioned in the Constitution of Australia and two referenda in the 1970s and 1980s to alter the Constitution relating to local government were unsuccessful . Every state government recognises local government in their respective constitutions . Unlike Canada, or the United States there is only one level of local government in each state, with no distinction such as cities and counties . </P> <P> The local governing body is generally referred to as a council, and the territories governed are collectively referred to as "local government areas"; however, terms such as "city" or "shire" also have a geographic interpretation . In August 2016 there were 547 local councils in Australia . </P> <P> Despite the single level of local government in Australia, there are a number of extensive areas with relatively low populations which are not a part of any local government area . Powers of local governments in these areas may be exercised by special purpose bodies established outside the general legislation, as with Victoria's alpine resorts, or directly by state governments . The area covered by local councils in Australia ranges from as small as 1.5 km (0.58 sq mi) for the Shire of Peppermint Grove in metropolitan Perth, to the Shire of East Pilbara in the Pilbara region of Western Australia, which covers 380,000 km (150,000 sq mi), an area larger than Germany or Japan . </P> <P> Local government in Australia is subject to the exclusive jurisdiction of the states or territories . The functions and practices of local government councils are similar throughout Australia, but may vary to some degree between jurisdictions . </P>

How does australia power our towns and cities