Annexation is the process by which one municipality absorbs land from a neighbouring municipality, typically to accommodate urban growth. Growing cities often seek to annex adjacent rural land to expand their boundaries for new housing, commercial development, or industrial areas. Because municipalities cannot unilaterally change boundaries, annexation requires provincial government approval. The process can be contentious, as the municipality losing land also loses property tax revenue, while the annexing municipality gains development potential but must extend services. Provincial bodies review annexation applications considering factors like growth needs, agricultural land preservation, and regional planning.