NOUN (2)

1. an urban district having corporate status and powers of self-government;

2. people living in a town or city having local self-government;

The Collaborative International Dictionary of English v.0.48:

Municipality \Mu*nic`i*pal"i*ty\, n.; pl. Municipalities. [Cf.
   F. municipalit['e].]
   A municipal district; a borough, city, or incorporated town
   or village.
   [1913 Webster]

Moby Thesaurus II by Grady Ward, 1.0:

44 Moby Thesaurus words for "municipality":
   Stadt, bailiwick, banlieue, boom town, borough, bourg, bureau,
   burg, burgh, city, commissariat, constablery, constablewick,
   constabulary, conurbation, department, district, exurb, exurbia,
   faubourg, ghost town, greater city, market town, megalopolis,
   metropolis, metropolitan area, ministry, office, outskirts, polis,
   secretariat, sheriffalty, sheriffwick, shrievalty, spread city,
   suburb, suburbia, town, township, urban complex, urban sprawl,
   urbs, village, ville