Section 388(1) in Andhra Pradesh Municipalities Act, 1965
(1)When a dispute exists between a council and one or more than one local authority in regard to any matters arising under the provisions of this Act or any other enactment and the Government are of opinion that the local authorities concerned are unable to settle it amicably among themselves, the Government may take cognizance of the dispute; and(a)decide it themselves, or(b)refer it for inquiry and report to an arbitrator or a board of arbitrators.