While all townships in Michigan are organized governments, a charter township has been granted a charter, which allows it certain rights and responsibilities of home rule that are generally intermediate between those of a city (a semi-autonomous jurisdiction in Michigan) and a village.
In 1947, the state legislature created a special charter township status, which grants additional powers and streamlined administration in order to provide greater protection for townships against annexation of land by cities and villages.
A charter township may establish a variety of municipal services, such as a police force, fire department, and assessors, and may also acquire property.
It may borrow money and issue bonds, with the approval of a majority of township voters in an election.
Temporary land transfers, which can involve charter townships, have provision under Public Act 425 of 1984.