Designated cities are delegated many of the functions normally performed by prefectural governments in fields such as public education, social welfare, sanitation, business licensing, and urban planning.
In some cities, ward offices are responsible for business licensing, construction permits, and other administrative matters.
The ward system was adopted by three more cities prior to World War II: Nagoya (1908), Yokohama (1927), and Kobe (1931).
Under a 1911 statute, wards were granted a corporate personality and so treated as local entities.
During the ensuing Japanese economic growth period, the government required designated cities to be forecast to reach a population of one million within the near future, but the requirement was dropped in 2005 to accommodate several geographically large cities that were formed by mergers, under the government of Junichiro Koizumi.