Simplify the following text for a Grade 12 native English-speaking person.
Original: In 1894 , based on these earlier subdivisions , the Local Government Act 1894 created urban districts and rural districts as sub-divisions of administrative counties , which had been created in 1889 .
Simplified: The first local government districts were created in 1894 by the Local Government Act 1894 which created urban districts and rural districts as sub-divisions of counties ( which had been created in 1889 ) .