The correct answer is B) Local governments only have the power that is specifically granted to them by states.
The sentence that is the most accurate summary of Dillon's rule is "Local governments only have the power that is specifically granted to them by states."
Dillon's rule served as the foundation of the municipal law. It is used to interpret state law when there is a controversy on whether or not the local government has the power to do something. Some lawyers called Dillon's rule the rule of statutory construction. The rule was drafted by Judge John Forest Dillon, the Chief Justice of the Iowa Supre Court in the 1880s.