Indiana Code Title 8. Utilities and Transportation § 8-23-4-4

Sec. 4. (a) The agency responsible for highways in each municipality with a population of at least five thousand (5,000) shall select a system of arterial streets for the municipality.  The system shall be selected on the basis of the greatest general importance to the municipality after an evaluation of each highway in the municipality.  The system may not include highways that are part of the state highway system.  The system of arterial streets must connect focal points of traffic interest, provide communication with other communities and outlying areas and provide for the continuity of the county arterial highway system into or through the municipality.  The agency shall use engineering standards in selecting the streets.

(b) The agency responsible for highways in each municipality with a population of less than five thousand (5,000) may limit streets selected for the arterial street system to extensions of the county arterial street system or the municipal arterial street system of adjoining municipalities into or through the municipality.

(c) The system of arterial streets selected by an agency under subsection (a) or (b) constitutes the municipal arterial street system of that municipality.

(d) The agency responsible for highways in a municipality may from time to time add, relocate, or delete highways from the municipal arterial highway system by following the procedure provided in subsection (a) or (b).

(e) If a highway or a segment of a highway is deleted from the municipal arterial highway system under subsection (d), it may:

(f) All roads under the jurisdiction of the agency responsible for the municipal highways of each municipality not included in a municipal arterial highway system constitute the municipal local highway systems of that municipality.