Prince Edward Island is the least populous province in Canada with 154,331 residents as of the 2021 census and is the smallest in land area at 5,681.18 km² (2,193.52 sq mi).^[1] Prince Edward Island's 63 municipalities cover 34.7% of the province's land mass and were home to 73% of its population in 2021.^{[2][3][lower-alpha 1]} These municipalities provide local government services to their residents in the form of fire protection, municipal planning services, and emergency measures planning.^[4] The remaining unincorporated areas have no local government.^[5]

Municipal statuses in Prince Edward Island are cities, towns, rural municipalities, and resort municipalities.^[6] Under Prince Edward Island's Municipal Government Act (MGA), which came into force on December 23, 2017,^[7] the formation of a municipality can be proposed by the Minister of Fisheries and Communities, the council of an existing municipality, or a petition signed by 30% of the residents that would be the electors of the new municipality.^[4] To be eligible for city or town status, certain minimum estimated population and total property assessment value criteria must be met.^[4] If those criteria are not met, rural municipality status can be granted if it is the opinion of the Minister of Fisheries and Communities that it would be in the public interest.^[4] The province's lone resort municipality – the Resort Municipality of Stanley Bridge, Hope River, Bayview, Cavendish and North Rustico – was established by order in council in 1990.^[6] The 2017 MGA prevents creation of any new resort municipalities.^[6]

Prince Edward Island has two cities, ten towns, fifty rural municipalities and one resort municipality,^[3][6] which are distributed across three counties – Kings, Prince and Queens. Charlottetown is Prince Edward Island's capital and largest municipality by population while Belfast is the largest municipality by land area.^[2] The smallest municipalities by population and land area are Tignish Shore and St. Louis respectively.^[2]

Under the province's MGA, a municipality may incorporate as a city if it has an estimated population of 15,000 or more and a total property assessment value of $750 million or more.^[4][6] Should a city no longer meet these requirements, the Minister of Fisheries and Communities may recommend to the Lieutenant Governor in Council to change the status of the municipality to a more appropriate status.^[4]

Prince Edward Island has two cities.^[3] Charlottetown is Prince Edward Island's capital and largest city both by population with 38,809 residents and by land area with 44.27 km² (17.09 sq mi).^[2] It forms the core of a census agglomeration that encompasses the middle of the island and is home to 78,858 residents, or 51% of the island's population.^[8] The province's second city is Summerside, which is located on the west side of the island. It has a population of 16,001 and a land area of 28.21 km² (10.89 sq mi).^[2] Starting with the municipal elections in 2018, the MGA enables cities to elect a mayor and a minimum of eight councillors.^[6] With general municipal elections occurring every four years, the next municipal election is scheduled for November 2022.^[9]

Under the province's MGA, a municipality may incorporate as a town if has an estimated population of 4,000 or more but is less than 15,000, and a total property assessment value of $200 million or more, but is less than $750 million.^[4][6] Should a town no longer meet these requirements, the Minister of Fisheries and Communities may recommend to the Lieutenant Governor in Council to change the status of the municipality to a more appropriate status.^[4]

Prince Edward Island has ten towns that are incorporated municipalities,^[3] which had a cumulative population of 32,632 in the 2021 census.^[2] The province's largest and smallest towns are Stratford and North Rustico with populations of 10,927 and 648 respectively.^[2] Three Rivers is Prince Edward Island's largest town by land area with 431.47 km² (166.59 sq mi) and O'Leary is the province's smallest town by land area with 1.83 km² (0.71 sq mi).^[2] Three Rivers is also the province's newest town, which incorporated as a town on September 28, 2018 through the amalgamation of the towns of Georgetown and Montague, five rural municipalities (Brudenell, Cardigan, Lorne Valley, Lower Montague, and Valleyfield), and portions of three adjacent unincorporated areas.^[10] Starting with the municipal elections in 2018, the MGA enables towns to elect a mayor and a minimum of six councillors.^[6] With general municipal elections occurring every four years, the next municipal election is scheduled for November 2022.^[9]

Under the province's MGA, municipalities that previously held community status under the previous Municipalities Act, which originally came into force in 1983,^[11] were carried forward as rural municipalities.^{[4][6][lower-alpha 2]} With the amalgamation of Brackley and Winsloe South on December 15, 2017,^[13] and then the MGA coming into force eight days later on December 23, 2017,^[7] Prince Edward Island had 58 communities that became rural municipalities.^[3][6] On September 28, 2018, three amalgamations reduced the total amount of rural municipalities to 50.^[10] As of the 2021 census, the province's largest and smallest rural municipalities are West River and Tignish Shore with populations of 3,473 and 64 respectively.^[2][3][14] Starting with the municipal elections in 2018, the MGA enables rural municipalities to elect a mayor and a minimum of six councillors.^[6] With general municipal elections occurring every four years, the next municipal election is scheduled for November 2022.^[9]

Prince Edward Island has one municipality holding resort municipality status. The Resort Municipality of Stanley Bridge, Hope River, Bayview, Cavendish and North Rustico was established as a resort municipality in 1990.^[4] The province's MGA allows this resort municipality to continue yet prevents the establishment of additional resort municipalities in the future.^[4][6] Starting with the municipal elections in 2018, the MGA enables the province's lone resort municipality to elect a mayor and a minimum of six councillors.^[6] With general municipal elections occurring every four years, the next municipal election is scheduled for November 2022.^[9] If the population of the lone resort municipality reaches 2,000 electors, it may be incorporated as a different type of municipality pursuant to the MGA.^[4]

• History of Prince Edward Island
• List of census agglomerations in Atlantic Canada
• List of population centres in Prince Edward Island