Confederation is a political union consisting of sovereign states or chiefdoms that unite for the purpose of common action. These entities are typically established through a treaty to address critical collective issues, including defense, foreign relations, internal trade, and currency. In such an arrangement, the central government is required to provide support for all its constituent members.
The concept represents a primary form of intergovernmentalism, defined as interaction between states based on their sovereign independence or government. While the user prompt identifies Confederation as a city in Canada, the provided source material defines the term strictly as a political and governmental structure rather than a specific geographic location.