(a) Except as provided under (b) and (c) of this section, for purposes of AS 17.38.300 - 17.38.320, the perimeter of an established village is a circle around the established village that includes an area within a five-mile radius of the post office of the established village. If the established village does not have a post office, the perimeter of an established village is a circle around the established village that includes an area within a five-mile radius of another site selected by the local governing body or by the board if the established village does not have a local governing body.
(b) If the perimeter of an established village determined under (a) of this section includes any area that is within the perimeter of another established village and, if the other established village has
(1) also adopted a local option under AS 17.38.300, the local option of the established village that is less restrictive applies in the overlapping area;
(2) not adopted a local option under AS 17.38.300, the local option does not apply in the overlapping area.
(c) If the board determines that the perimeter of an established village as provided under (a) and (b) of this section does not accurately reflect the perimeter of the established village, the board may establish the perimeter of the established village and the areas of overlapping perimeter described under (b) of this section for purposes of applying a local option selected under this chapter.