BusinessAugust 16, 2026

disincorporating

dis-in-KOR-puh-ray-ting

Definition

The act of a municipality formally dissolving its status as an incorporated city or town, thereby transferring its governmental powers and responsibilities to a higher level of government, such as a county.

Etymology

Derived from the Latin 'incorporare' (to form into a body) with the prefix 'dis-' (reversal or separation). The term emerged to describe the legal dissolution of an entity that was previously joined or organized as a corporate body.

In the news

The article mentions disincorporating as a severe final option that Lemon Grove considered in 2019 to address its fiscal crisis, serving as a cautionary example of what happens when a city can no longer fund its operations.

‘This course is not sustainable’: National City facing possible insolvency amid growing budgetary deficit

Read the full article ↗

San Diego Union-Tribune

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