Federal cities are unique urban areas that serve as the seat of government for a nation. They are typically established to provide a neutral ground for political activities and to ensure that no single state or region holds undue influence over the national government. Examples of federal cities include Washington, D.C. in the United States and Canberra in Australia. These cities often have a special status, separate from other administrative divisions, allowing them to operate independently. This arrangement helps maintain a balance of power among different regions and promotes national unity. Federal cities are usually home to important government institutions, such as the parliament and the presidential palace.