In Japan, infrastructure is centrally funded. So roads, water, sewers, schools, and police services continue even if the local population can't pay for them.
There has been a lot of consolidation of village and town services as rural populations have declined. This started decades ago, when the national government announced plans to shrink from 3200 municipalities to 1000 by 2005:
Small towns can choose to go it alone, but a system of carrots and sticks crafted by the central government makes it a costly proposition. “This utter despotism will only kill off towns and villages,” groused one group of local officials.
Exactly how the decision to merge is made can be a bit murky. Some municipalities hold public referendums, but local officials are free to ignore the results. Other municipalities don’t even bother with a vote.
Among the factors towns use in choosing a mate are proximity, shared history, and whether the prospect’s job base, hospitals and shopping are desirable.
Small towns can choose to go it alone, but a system of carrots and sticks crafted by the central government makes it a costly proposition. “This utter despotism will only kill off towns and villages,” groused one group of local officials.
Exactly how the decision to merge is made can be a bit murky. Some municipalities hold public referendums, but local officials are free to ignore the results. Other municipalities don’t even bother with a vote.
Among the factors towns use in choosing a mate are proximity, shared history, and whether the prospect’s job base, hospitals and shopping are desirable.
https://www.latimes.com/archives/la-xpm-2003-aug-07-fg-merge...