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In New York State, a town is the major subdivision of each county. Towns provide or arrange for most municipal services for residents of hamlets and selected services for residents of villages. All residents of New York who do not live in a city or on an Indian reservation live in a town. A village is an incorporated area which is usually, but not always, within a single town. A village is a clearly defined municipality that provides the services closest to the residents, such as garbage collection, street and highway maintenance, street lighting and building codes. Some villages provide their own police and other optional services. A hamlet is a populated area within a town that is not part of a village. The term "hamlet" is not defined under New York law (unlike cities, towns and villages), but is often used in the state's statutes to refer to well-known populated sections of towns that are not incorporated as villages. For more information, see the article Political subdivisions of New York State.

In 2006 Forbes Magazine ranked six Suffolk County zip codes as among the top 110 most expensive in the United States. Sagaponack, New York was ranked the most expensive zip code in the nation with a median home sale price in 2005 of $2,787,500. Water Mill, New York was ranked the sixth most expensive zip code in the nation, with a median home sale price in 2005 of $2,150,000.

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