The rule is the prevailing theory defining the relationships of states and local governments, a relationship in which local governments are fundamentally administrative subdivisions of the state and have no rights except for those granted to them by the state.

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The rule described in the statement is known as Dillon's rule, which was formulated by Judge John F. Dillon in 1868. Dillon's rule has been influential in shaping the legal framework of state-local government relations in the United States. It asserts that local governments are creatures of the state and exist solely at the pleasure of the state. Therefore, they have only those powers that the state grants them explicitly or implicitly.

The Rule Is the Prevailing Theory Defining the Relationships of States