How is it done in your State?

Duane you forgot village between town and hamlet 😉

Villages have their own elected mayor and council (called trustees), planning, zoning, ARB, etc.

And just to add interest, Villages can span Towns and Counties.

The Village of Saranac Lake contains parts of three Towns (Harrietstown, St. Armand, and North Elba) and two Counties (Franklin and Essex).

Oh, man! Now, I'm thoroughly bumfuzzled.