Florida Gov. Ron DeSantis signed a bill into law Friday that would eliminate the special legal setup that allows Disney to operate as an independent government around its Orlando-area theme parks.
The move comes as Florida's Republican-led government has taken aim at Disney -- the largest single-site employer in the state -- for its opposition to a law restricting education on LGBTQ issues in schools.


Yet the elimination of Disney's special purpose district, known as Reedy Creek, could have much further implications for the company and for state taxpayers. Here's a look at the history of Reedy Creek, why it became a focus in this special legislative session, and what removing its special status would mean for Disney and for Florida taxpayers.


What is Reedy Creek?
Reedy Creek is the name for the Reedy Creek Improvement District, a special purpose district created by state law in May 1967 that gives The Walt Disney Company governmental control over the land in and around its central Florida theme parks. The district sits southwest of Orlando.


At the time, the land was little more than uninhabited pasture and swamp, according to Reedy Creek's website. With the special purpose district, Disney took over responsibility for providing municipal services like power, water, roads and fire protection -- but were also freed from dealing with legal red tape or paying taxes for services that benefited the broader public.


According to Richard Foglesong, the author of the book "Married to the Mouse: Walt Disney World and Orlando," Disney had previously had issues with the government of Anaheim, California, at its Disneyland park, completed a decade earlier. With those issues in mind, Disney pushed for a special purpose district in Florida that would give the company the ability to self-govern.


In exchange, Florida became the home base for Disney World and its millions of tourists."Florida needed Disney more than Disney needed Florida," Foglesong told CNN.



Today, the Reedy Creek special district encompasses about 25,000 acres in Orange and Osceola counties, including four theme parks, two water parks, one sports complex, 175 lane miles of roadway, 67 miles of waterway, and the cities of Bay Lake and Lake Buena Vista, its website says.


"The cooperation and commitment between the Reedy Creek Improvement District and Walt Disney World Company is as strong today as it was when the District was created in 1967," the Reedy Creek website states. "The result is an example of how a working partnership between business and government can be prosperous for both sides."


Why is this an issue now?
The bill passed by Florida's legislature is a form of political retaliation against Disney for its criticism of the "Parental Rights in Education" bill, which critics have termed the "Don't Say Gay" bill.
That state legislation, signed into law last month, prohibits schools from teaching children about sexual orientation or gender identity "in a manner that is not age-appropriate or developmentally appropriate." The legislation also allows parents to bring lawsuits against a school district for potential violations.