The three general forms of local governments are divided into two tiers. The lower-tier government, municipality and TAO, function as a single operating unit, which is very close to local residents, providing local public services within their defined territory, While municipalities are localted in urbanized areas, TAOs are mostly established in less-developed rural communities. By contrast, PAO is the upper-tier local government which covers an entire province and is responsible for administering local public services at the provincial level as well as for working in development projects that need collaboration among several municipalities or TAOs within the provincial territory. In other words, the service functions that cross the boundaries of any single municipality or TAO are held by PAO.