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A nagar panchayat (transl. 'town council') or town panchayat or Notified Area Council (NAC) in India is a settlement in transition from rural to urban[1] and therefore a form of an urban political unit comparable to a municipality. An urban centre with more than 12,000 and less than 40,000 inhabitants is classified as a nagar panchayat. The population requirement for a Town Panchayat can vary from state to state.
Such councils are formed under the panchayati raj administrative system.[2] In census data, the abbreviation T.P. is used to indicate a "town panchayat".[3] Tamil Nadu was the first state to introduce the panchayat town as an intermediate step between rural villages and urban local bodies (ULB).[4] The structure and the functions of the nagar panchayat are decided by the state government.