A

Incorporation creates a local government and establishes geographic boundaries for villages, towns, and cities.

Explanation:

Incorporation is the formation of a new corporation, which may be for-profit, non-profit, a sports club, or a new government. For example, when people gather to live in a previously unsettled location in significant quantities, they may choose to become a municipality. The area then becomes self-governed, though it is still subject to state and federal law when applicable. The practice is primarily employed in countries formerly associated with the United Kingdom.

A Map That Was Attached to Chicago’s Incorporation Documents.
A Map That Was Attached to Chicago’s Incorporation Documents (Source: https://i.imgur.com)

Incorporation has consequences besides self-government due to the increased responsibility of the government. As the leadership receives legislative and administrative authority over the territory, the creation of clear borders becomes necessary to define the limits of its powers. As such, the formation of boundaries and districts is an essential part of incorporation.