Annexation battles often are the root cause of long-standing conflicts between municipalities. Some states, including Wisconsin, have sought to reduce the number of annexation battles by allowing the use of intergovernmental agreements addressing municipal boundary expansion and service delivery. This paper reviews Michigan's Conditional Land Transfer Act, Public Act 425 of 1984, including its unique land transfer and reversion provisions. Using a database of all agreements filed since the law's inception, this paper reviews the common provisions found in these agreements. The authors also analyze emerging policy issues and suggest amendments to further the initial policy objectives of Michigan's alternative to annexation.