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> Why is it a city.

Why is Disney World a city?

designation of a city means they get a greater degree of autonomy.

Its a way to manipulate the system to accelerator the plan. Smart thinking, but I suspect some aspect of this will be controversial.

It has housing and a school. It's a city.

Many towns, villages, hamlets, etc. also have those.

Starbase was made a city. It's not a town, village, or hamlet because it's been legally designated a city in Texas.

Yes, we agree. The parent poster seems to think city is a de facto designation for a place with housing and schools; I'm noting that it isn't.

It's a bit of an off-topic, but traditional settlement hierarchy was this:

The settlement only has houses - it's a hamlet.

The settlement has a church - it's a village.

The settlement has a market - it's a town.

The settlement has a cathedral - it's a city.