The local governments usually derive power from the constitution on which they are established. Most orderly societies have a rule of law which the people in the particular society subscribe to.
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Governments derive their powers from the consent of the governed.
it gives states power to create local governments
state governments grant local governments their power but do not tend to interfere with their day -to-day responsibilities
I believed they are shared between state and local governments
The answer to this question heavily depends on what society we are talking about. In modern history, since the enlightenment, it is widely believed that governments derive their power from the people whom they govern. This has not always been the case, however, when history shows us that many governments thought they derived their authority to govern from divine right or heritage, or both.