A community may incorporate under this chapter as a Type B general-law municipality if it:

1. (1) constitutes an unincorporated town or village;
2. (2) contains 201 to 9,999 inhabitants; and
3. (3) meets the territorial requirements prescribed by Section 5.901.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.