Wait, How DID Disney World Create Its Own Government?

If you’ve been paying attention to Disney news over the past few years, you’ve probably heard the name Reedy Creek Improvement District (RCID). This now-transformed and newly named special district essentially functions as its own government and has done so since 1967, when it was first created.

Cinderella Castle

The RCID has undergone some significant changes over the years including being renamed to the Central Florida Tourism Oversight District (CFTOD) and falling under the control of Florida’s governor. But, just how did Disney end up creating its own government?

In May 1967, the Reedy Creek Improvement Act was signed into law — establishing the area surrounding Disney World as its own governmental authority. This law granted Disney the same authority and responsibility as a county government. And from there, chaos ensued.

Nah, not really — not yet anyway. That wouldn’t come until years later, when the act was challenged — but I’ll get to that shortly.

Reedy Creek Improvement District

When Disney’s “Florida Project” (the name Imagineers called Disney World before it was officially named) was underway, much of Orange and Osceola Counties — where Disney World is located — were underdeveloped and lacked the ability to provide power and water to the property.

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So, Disney worked with the Florida Legislature to create a special district that could govern Its own properties and levy additional taxes on top of what local governments charge, in order to pay for various services on Disney property.

Essentially, Disney wanted to ensure that Florida taxpayers wouldn’t have to take on the cost of providing and maintaining essential public services and infrastructure required to build and later operate Disney World. With the Reedy Creek Improvement Act, Disney was able to pay for the water, power, etc. that would normally fall to taxpayers in a normal district or county.

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Not only that, but since Disney World spans two counties, having the Reedy Creek Improvement District allowed a unified governing body to make decisions, which gave legislative flexibility when it came to Disney’s innovative construction techniques and more.

A board of supervisors was to be chosen by landowners inside the district, who would in turn make decisions on behalf of Reedy Creek, and thus Disney.

Reedy Creek Trash Cans

The status of the district has been challenged more than once in the past. In 1968, the Supreme Court of Florida ruled that the law did not violate Florida’s Constitution, and in the 1980s, Orange County officials threatened legal action against Disney over the RCID charter.

More recently, in April 2022, the Florida Legislature passed a law to disestablish the RCID that was supposed to take effect in June 2023, with lawmakers and Governor Ron DeSantis arguing that the Orange County government should be in charge.

via Twitter

After it became unclear what would happen to the $1 billion in bond liabilities the RCID had if the district were dissolved, lawmakers voted to revert most of the changes — but replaced the board with five members appointed by the Governor.

Additionally, some of the district’s powers were stripped — such as the ability to construct a nuclear power plant, airport, and stadium — and the name was changed to the Central Florida Tourism Oversight District.

While the future of the former Reedy Creek Improvement District seems secure for now, we’ll be keeping an eye out for any potential changes that may come to Disney’s special tax district.

In the meantime, make sure you stay tuned to the Disney Food Blog so you don’t miss the latest Disney news and more!

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