The Oshakati Town Council has upgraded the Uukwangula Settlement to a township after acquiring the settlement from the Oshana Regional Council.
The township will now benefit from all municipal services.
Speaking at the handover ceremony, Oshana Governor Elia Irimari said the transition signifies more than an administrative change, reflecting a focus on essential services expanded to residents here.
The move is also expected to create economic opportunities for locals and accelerate sustainable development for residents of Uukwangula and surrounding areas.
"This collaborative spirit is vital for building a unified Oshana Region, one where each community, from settlements to towns, contributes to and benefits from the region's prosperity. To the residents of Uukwangula, I wish to emphasise that today's handover is a promise. It is a promise that our aspirations for better infrastructure, as you always wish, will come, but it will take time."
He added that all municipal services will now be handled by the town council.
Oshakati town mayor Leonard Hango said the council's dedication has paved the way for the smooth transition of Uukwangula from a settlement to a township and will enable them to accelerate development.
"This integration Cleary promises new possibilities for growth as it will attract investment to the town as the town has now expanded. This also provides an opportunity to look at long-term plans for creating facilities such as recreational parks for children, open markets, and enhanced business opportunities."