Sec. 377.002. SCOPE. (a) A municipality may create a district as provided in this chapter in: (1) all or part of the boundaries of the municipality; (2) all or part of the boundaries of the municipality and all or part of the boundaries of the municipality's extraterritorial jurisdiction; or (3) all or part of the municipality's extraterritorial jurisdiction. (b) The municipality may include territory outside of the municipality only to the extent that territory is in the municipality's extraterritorial jurisdiction.
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