Urban reserves are First Nations reserve lands located within or adjacent to cities, creating unique jurisdictional situations. Reserve lands are federal jurisdiction under the Indian Act regardless of location, meaning municipal bylaws don't apply and property taxes can't be collected. However, urban reserves exist within municipal service areas, creating questions about service delivery, development coordination, and economic relationships. First Nations may establish urban reserves through Treaty Land Entitlement processes or land purchases. Some urban reserves support economic development—retail, gaming, or commercial ventures—that interact with surrounding municipal economies. Successful urban reserve development typically involves service agreements and cooperation between First Nations and municipal governments addressing mutual interests.