A revenue sharing agreement is an arrangement between municipalities to share tax revenues from specific developments or across boundaries. Such agreements may apply when development in one municipality benefits from another's infrastructure, when regional facilities serve multiple communities, or when economic development affects neighbouring jurisdictions. Agreements specify sharing formulas, calculation methods, and duration. Revenue sharing can reduce competition between municipalities, encourage regional cooperation, and ensure fair distribution of benefits from developments that create costs in one community while generating tax revenue in another. Intermunicipal revenue sharing is distinct from provincial-municipal revenue sharing programs.