Understanding Extraterritorial Powers — And a Win for the Town with the Border Agreement amendment

By: Mike Didier

Most residents of the Town of Port Washington would be surprised to learn that another municipality can exercise meaningful governmental authority over land inside the Town.

But it is true.

Under Wisconsin law (Wisconsin Statutes § 62.23(7a)), the city of Port (and Village of Saukville) has what are known as extraterritorial powers—authority that extends beyond its borders into the Town of Port. These powers can affect how land is divided, how property is developed, and what uses are permitted, even though the residents of the Town cannot vote for the officials making those decisions.

For many residents of the town, that reality comes as a shock. We expect local control to mean decisions are made by the government we elect. But no, a city's common council can deny a town's residents the right to divide land, among other things.

It is well known that recently, the Town negotiated a boundary agreement with the City of Port. One of the many terms of this agreement directly addresses this issue in our Industrial Park (Knellsville)

Under the agreement:

• The city agreed it will not exercise its extraterritorial powers within the Town’s Industrial Park.

• In exchange, the Town agreed it will not symbolically object to City actions within one of the City’s industrial parks.

Some might ask whether the Town gave up leverage. In practical terms, the answer is no.

Towns do not possess regulatory authority over how cities zone land, approve developments, or manage property within city limits. Towns cannot enforce their ordinances within another city. The only available tool is a formal objection—essentially a symbolic statement of opposition that carries no binding legal effect. Such objections are not uncommon across Wisconsin, but they do not alter outcomes.

So, the Town did not surrender substantive authority—because none existed to give.

The city, however, agreed to refrain from using a real and consequential power it holds over land inside the Town.

That is a meaningful distinction.

This agreement protects local autonomy where it matters most: employment land, tax base, and long-term economic development within the Town. It provides certainty to property owners and businesses while preserving cooperative intergovernmental relationships.

In short, the Town exchanged symbolism for substance—and secured greater local control as a result.

That is a win for Town residents.