Under state law, an area may incorporate as a city if it has a minimum of 1500 inhabitants. If the area is located within five miles of the boundaries of a city with a population of 15,000 or more, the area must have a minimum of 3000 inhabitants prior to incorporating.
 
A registered voter in the area proposed for incorporation may initiate incorporation proceedings by filing a notice with the county containing information about the proposed city or town and paying the $100 filing fee.
 
The county boundary review board, or the county legislative authority if there is no boundary review board in the county, must hold a public meeting on the proposed incorporation following the filing of a notice. Within 180 days of the meeting, at least 10 percent of the population of the area must sign a petition for incorporation and the petition must be filed with the county auditor.
 
If these steps are satisfied, an election will be held to determine whether the area will incorporate. A voter must be qualified to vote in the county and must have resided within the area proposed for incorporation for at least 30 days to be eligible to vote in the election. If a majority of voters vote in favor of incorporation, the new city or town is incorporated.

The requirement that an area within five air-miles of a city of 15,000 or more must have at least 3000 inhabitants to incorporate is temporarily suspended until June 30, 2028.