The people give the local government power through voting.
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which form of government grants power based on heredity
In the US, the government derives its just power from the consent of the governed.
Through the grants of power in the U.S. Constitution, the Framers sought to empower government and limit it. This was accomplished through the federalism system of government which distributed authority between the national and individual state governments.
Another example of federal government taking states power would be the new ways of controlling the states spending, the government now gave out categorical grants from which it could control how the states spent this money. For some states the government was giving out over $200 billion dollars from which 90% of this would be categorical grants and the federal government would regulate how it was spent. The states therefore were restricted on what they could spend the money on and this further showed an increase in federal government's power.
A commission is a form of local government in which power is diffused and no single person is in charge. Another example of a local form of government is mayor-council.