In Iceland, there are only two administrative levels, local and national. The third branch, district authorities, is almost exclusively concerned with the collection of official fees for the national authority.
Many rural communities are small, with as little as 50 residents. In past years, many of the smaller rural communities have joined together in order to save on management costs and make various improvement in efficiency. At the same time, more matters have been moved to local authorities, such as supervision of the elementary schools, responsibility for matters concerning the handicapped, and part of the Social Services.