The Local Agency Formation Commission (LAFCO) plays a vital role in land use policy making decisions. Established under state law, LAFCO decides whether or not cities will be allowed to annex lands for new growth. LAFCO also presides over any proposal to create a new city. For example, the future of the farmlands of the Salinas Valley will be decided by LAFCO. It’s hard to overstate the importance of what LAFCO does.