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A Municipality in Croatia is known as an općina (plural: općine). Though equal to Croatian cities (grad, plural: gradovi) in administrative powers, they are usually more likely to consist of a collection of villages in more rural or suburban area, whereas cities are more likely to cover urban area. According to the law, a municipality is a local self-government unit which is established, as a rule, for the area of several inhabited settlements representing a natural, economic and social whole, connected by the common interests of the population.

More information on the Wikipedia page [1]

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