A nagar panchayat or Notified Area Council (NAC) or City Council in India is a settlement in transition from rural to urban.
The 74th Amendment made provisions relating to urban local government. The three-tier structure is municipal corporation, municipal council and nagar panchayat.
Each nagar panchayat has a committee consisting of a chairman/mayor along with ward members. There are at least ten elected ward members and three nominated members. NAC members of the nagar panchayat are elected from the wards of the nagar panchayat on the basis of adult franchise for a term of five years. There are seats reserved for scheduled castes, scheduled tribes, backward classes and women. The councillors or ward members chosen by direct election from electoral wards in the nagar panchayat.
The Chairman is the head of the Notified Area Committee. The Executive Officer is the official in charge of the Notified Area Council. Executive Officers monitor the implementation of all the programs related to planning and development of the Notified Area Council with the coordination of the NAC Chairman and all ward members.
Nagar panchayats derive income from taxes including those on water, pilgrimage, markets and transport services. They also receive a mixed grant from the state government, in proportion to the land revenue and money for works and schemes assigned to them.