Traditionally, the granting of a charter gave a settlement and its inhabitants the right to town privileges under the feudal system.
Towns were often "free", in the sense that they were directly protected by the king or emperor, and were not part of a feudal fief.
Since the beginning of American colonial rule, Philippines cities were formally established through laws enacted by the various national legislatures in the country.
In the United States, such charters are established either directly by a state legislature by means of local legislation, or indirectly under a general municipal corporation law, usually after the proposed charter has passed a referendum vote of the affected population.
A municipal charter is the basic document that defines the organization, powers, functions and essential procedures of the city government.