The "lowest" level of local government that affects the whole of New Zealand is the city and district level. Every part of the North Island, the South Island, and the more substantial of the nearby smaller islands is part of either a city or a district. The Chatham Islands are a "territory" with a council that has district and regional powers, making it similar in function to a unitary authority. Schedule 2 of the Local Government Act 2002 says this: 2. Boundaries of districts— (4) Subclause (3) applies subject to the Order in Council giving effect to a reorganisation scheme.