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In Ontario, the government punishes cities by forcing them to provide more services. This is especially true in the north, where the largest city in a district (which is like a county but has no government) is responsible for providing all other communities in its district with various social services like housing, ambulances, and welfare.

Cities here are large geographic blocks though, not oddly shaped blobs that interlock with each other and have enclaves and exclaves all over the place, so the idea of dissolving a city is a bit more impractical unless its in a district with a county government. And in most cases, our large cities are already independent of their counties.