The Law on the Legal Status of Cities and Villages (Amended), the Law on the Regulation for Compliance with the Law on the Legal Status of Cities and Villages (Amended), and Resolution No. 72 of the Parliament of 2024 "On the Establishment of Cities" state that certain functions will be implemented and complied with starting January 1, 2026. In accordance with Article 1 of the Law on the Regulation for Compliance with the Law, representatives of the aimag, soum, and district People's Representative Khurals elected in the 2024 elections, along with the governors nominated and appointed by them, will assume the responsibilities of the city council and mayor in their respective cities starting January 1, 2026. This arrangement will remain until the city council and mayor are elected as per legal regulations.

    Resolution No. 72 of the Parliament of 2024, titled “On the Establishment of Cities,” mandates the establishment of six cities with state status: Darkhan, Erdenet, Zuunmod, Kharkhorum, Baganuur, and Nalaikh; forty-three cities with local countryside status; and four satellite cities. Article 11 of the resolution requires the Government to develop and submit to Parliament a draft resolution concerning the determination of the size and boundaries of land associated with cities or satellite cities with either state or local status as part of the new city establishment. Additionally, it necessitates the transfer of property, assets, budget, organizational structure, and staff of the administrative and territorial units under its jurisdiction to the city where functions are being transferred in accordance with the law.

    Due to the time needed for determining land area size, transferring property, assets, budget, organizational structure, personnel, consulting with localities, and resolving issues, the revised Law on the Legal Status of Cities and Villages, the Law on the Regulation for Complying with the Law, and Parliament Resolution No. 72 of 2024 were submitted for one year.