The act authorizes the Department to make grants to any two or more municipalities or another similar general purpose unit of government created by the General Assembly, or to a body which is authorized to act in behalf of two or more units of government, for the purpose of assisting them in acting in concert in the performance of a local governmental function, or for the purpose of conducting studies and investigations to determine the feasibility and desirability of acting in concert in the performance of local governmental functions.
12 Pa. Code § 119.2