Free Town

A Free Town is an independent town or small city-state which, rather than being subject to the rule of a lord or archon, is governed by a council chosen by the inhabitants of the town itself. Depending on the laws by which the members of this council are selected, they may be picked only by the town's wealthiest merchants and landholders, or by a broader section of the inhabitants. 
The Koerdian Freehold could be considered a confederation or league of free towns, with the whole Freehold governed by an assembly chosen by the inhabitants of the constituent towns just as they each choose their own local council.
In the Helvandrian context, the concept of a Free Town is associated with, but not identical to, the class of League member states called Chartered Free Cities (which are entitled to self-rule and have the right to levy their own taxes, unlike Palatine Cities, but whose rulers do not hold the status of Elector). Some of the League's Chartered Free Cities are Free Towns with an elected council, but others have hereditary lords.