Vt. Stat. tit. 10 § 736
Any district or union organized under the provisions of this chapter may be divided and the divided portions may become separate districts or unions or may be combined with one or more districts or unions as hereinafter provided. When the State Council deems it advisable to divide a district or union, the divided portions to become one or more separate districts or unions, or to be combined with one or more existing districts or unions, it shall first determine whether such divisions, or divisions and combinations, are administratively practicable and feasible. In making such determination, the State Council may hold hearings, conduct referenda, or use any other means that it deems adequate to assist it. However, no such determination may be made until after the district or union governing bodies of all districts or unions concerned have approved by resolution the proposed divisions, or divisions and combinations. When the State Council has determined such moves to be practicable and feasible, it shall by resolution declare the proposed divisions, or divisions and combinations, to be in effect.
10 V.S.A. § 736