OPINION
COMPTON, Justice.
I.
FACTUAL AND PROCEDURAL BACKGROUND
This controversy concerns a portion of the Nushagak-Mulchatna watershed in Southwest Alaska. The Lake & Peninsula Borough (Borough), incorporated in 1989, originally encompassed a portion of the watershed within its northwest boundary. The “Nushagak villages”
and other respondents/cross-petitioners (Villages) are not located within the Borough, but rather represent subsistence users of the watershed.
A.
FACTS
The Borough was the product of a hurried incorporation effort promoted by the Lake & Peninsula School District (District).
The District determined that the northwest boundary of the Borough should coincide with that of the Lake & Peninsula Regional Educational Attendance Area (REAA) boundary.
The District filed a petition for incorporation of the Borough with the Department of Community & Regional Affairs (DCRA) on November 10, 1988. DCRA, which had been working with the District to prepare the petition, accepted the petition immediately.
The District then served copies of the petition materials on “every municipality in or adjoining the territory,” as required by 19 Alaska Administrative Code (AAC) 10.370(a). It published notice of the filing of the petition in various newspapers
as required by 19 AAC 10.380(a). It also mailed to necessary parties and published in various newspapers
the dates and locations of Local Boundary Commission (LBC) hearings, as required by AS 44.47.573 and 19 AAC 10.400. Nonetheless, notice of the petition or the related hearings was
not
sent to Villages.
Public LBC hearings were scheduled for December 3 and 4 in Newhalen, Uiamna/Port Heiden and Chignik. However, because of adverse weather the hearings were held tele-phonically between the' Lake & Peninsula communities, Kodiak and Anchorage. Villages did not participate. In December LBC approved the petition, as amended in part to exclude a portion of Borough land that LBC simultaneously annexed to Kodiak.
The Bristol Bay Native Association (BBNA) then submitted written comments to LBC on behalf of Villages, objecting to the Borough’s northwest boundary and seeking reconsideration of LBC’s decision. The Borough and DCRA opposed. At a hearing, LBC denied reconsideration. However, in the wake of complaints by Villages that they
had
not been
permitted to testify, LBC scheduled another hearing. After the second hearing, LBC again denied reconsideration.
The Borough was incorporated on April 24, 1989, when its residents voted to approve the petition. AS 29.05.110(a). It has since begun the business of local government.
B.
PROCEEDINGS
Villages filed a complaint for declaratory and injunctive relief in the superior court in February 1989, naming LBC (and later the Borough) as defendant. The complaint alleged statutory and constitutional violations in setting boundaries and in providing notice of the incorporation process. It sought a judgment voiding LBC’s incorporation decision and remanding the matter to LBC for further proceedings.
In January 1991 the superior court gave notice of its intent to dismiss the ease pursuant to Alaska Civil Rule 16.1(g). Simultaneously, the Borough moved for summary judgment based on laches. Villages then moved for summary judgment based on alleged notice deficiencies. In response, the Borough, joined by LBC, sought dismissal based on the
de facto
incorporation doctrine. LBC also asserted the impropriety of proceeding other than by administrative appeal.
In July 1991 the superior court orally denied the motions for summary judgment and elected to treat the matter as an administrative appeal.
At that time the court opined that there were defects in the notice,
but did not determine their effect or the effect of the alleged
de facto
status of the Borough. In a later written decision the court found that (1) the notice violations had prejudiced Villages by abbreviating the time they had in which to voice opposition to the Borough’s boundaries, and (2) the notice defects vitiated any “color-able” compliance necessary to find
de facto
incorporation status. It also rejected the Borough’s laches defense. The attendant remedy was determined in a series of written responses to requests for clarification.
See infra
part II.C.l. The court declared the northwest boundary to be voidable and ruled that if LBC changed the boundary on remand, then there would have to be an election “restricted to approval of the new boundary versus retention of the existing boundary.”
The Borough challenges the court’s ruling regarding notice and laches.
Villages challenge the court’s determination of the proper remedy. The LBC hearing has been stayed by mutual agreement of the parties.
II.
DISCUSSION
A.
NOTICE
1.
Statute and Regulations.
The following statute and former DCRA regulations are relevant to this case.
Alaska Statute 44.47.573 provides:
Notice of public hearings. Public notice of a hearing of the local boundary commission shall be given in the area in which the hearing is to be held at least 15 days before the date of the hearing.... The [DCRA] commissioner shall give notice of the hearing at least three times in the press, through other news media, or by posting in a public place, whichever is most feasible.
Former 19 AAC 10.370 (reorganized 1992) provides in part:
SERVICE, (a) The petitioner shall, by certified mail, serve a copy of the petition and brief, together with accompanying exhibits, to every municipality in or adjoining the territory. The service shall be made at the same time that the petition is filed with the [DCRA] commissioner.
Former 19 AAC 10.380 (reorganized 1992) provides in part:
NOTICE OF PETITION, (a) Upon receipt of notice from the [DCRA] that the petition and brief have been accepted, the petitioner shall cause notice of the filing of the petition to be published in a newspaper of general circulation in the territory, or if a newspaper of general circulation is not available, post notice in at least three public and prominent locations....
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OPINION
COMPTON, Justice.
I.
FACTUAL AND PROCEDURAL BACKGROUND
This controversy concerns a portion of the Nushagak-Mulchatna watershed in Southwest Alaska. The Lake & Peninsula Borough (Borough), incorporated in 1989, originally encompassed a portion of the watershed within its northwest boundary. The “Nushagak villages”
and other respondents/cross-petitioners (Villages) are not located within the Borough, but rather represent subsistence users of the watershed.
A.
FACTS
The Borough was the product of a hurried incorporation effort promoted by the Lake & Peninsula School District (District).
The District determined that the northwest boundary of the Borough should coincide with that of the Lake & Peninsula Regional Educational Attendance Area (REAA) boundary.
The District filed a petition for incorporation of the Borough with the Department of Community & Regional Affairs (DCRA) on November 10, 1988. DCRA, which had been working with the District to prepare the petition, accepted the petition immediately.
The District then served copies of the petition materials on “every municipality in or adjoining the territory,” as required by 19 Alaska Administrative Code (AAC) 10.370(a). It published notice of the filing of the petition in various newspapers
as required by 19 AAC 10.380(a). It also mailed to necessary parties and published in various newspapers
the dates and locations of Local Boundary Commission (LBC) hearings, as required by AS 44.47.573 and 19 AAC 10.400. Nonetheless, notice of the petition or the related hearings was
not
sent to Villages.
Public LBC hearings were scheduled for December 3 and 4 in Newhalen, Uiamna/Port Heiden and Chignik. However, because of adverse weather the hearings were held tele-phonically between the' Lake & Peninsula communities, Kodiak and Anchorage. Villages did not participate. In December LBC approved the petition, as amended in part to exclude a portion of Borough land that LBC simultaneously annexed to Kodiak.
The Bristol Bay Native Association (BBNA) then submitted written comments to LBC on behalf of Villages, objecting to the Borough’s northwest boundary and seeking reconsideration of LBC’s decision. The Borough and DCRA opposed. At a hearing, LBC denied reconsideration. However, in the wake of complaints by Villages that they
had
not been
permitted to testify, LBC scheduled another hearing. After the second hearing, LBC again denied reconsideration.
The Borough was incorporated on April 24, 1989, when its residents voted to approve the petition. AS 29.05.110(a). It has since begun the business of local government.
B.
PROCEEDINGS
Villages filed a complaint for declaratory and injunctive relief in the superior court in February 1989, naming LBC (and later the Borough) as defendant. The complaint alleged statutory and constitutional violations in setting boundaries and in providing notice of the incorporation process. It sought a judgment voiding LBC’s incorporation decision and remanding the matter to LBC for further proceedings.
In January 1991 the superior court gave notice of its intent to dismiss the ease pursuant to Alaska Civil Rule 16.1(g). Simultaneously, the Borough moved for summary judgment based on laches. Villages then moved for summary judgment based on alleged notice deficiencies. In response, the Borough, joined by LBC, sought dismissal based on the
de facto
incorporation doctrine. LBC also asserted the impropriety of proceeding other than by administrative appeal.
In July 1991 the superior court orally denied the motions for summary judgment and elected to treat the matter as an administrative appeal.
At that time the court opined that there were defects in the notice,
but did not determine their effect or the effect of the alleged
de facto
status of the Borough. In a later written decision the court found that (1) the notice violations had prejudiced Villages by abbreviating the time they had in which to voice opposition to the Borough’s boundaries, and (2) the notice defects vitiated any “color-able” compliance necessary to find
de facto
incorporation status. It also rejected the Borough’s laches defense. The attendant remedy was determined in a series of written responses to requests for clarification.
See infra
part II.C.l. The court declared the northwest boundary to be voidable and ruled that if LBC changed the boundary on remand, then there would have to be an election “restricted to approval of the new boundary versus retention of the existing boundary.”
The Borough challenges the court’s ruling regarding notice and laches.
Villages challenge the court’s determination of the proper remedy. The LBC hearing has been stayed by mutual agreement of the parties.
II.
DISCUSSION
A.
NOTICE
1.
Statute and Regulations.
The following statute and former DCRA regulations are relevant to this case.
Alaska Statute 44.47.573 provides:
Notice of public hearings. Public notice of a hearing of the local boundary commission shall be given in the area in which the hearing is to be held at least 15 days before the date of the hearing.... The [DCRA] commissioner shall give notice of the hearing at least three times in the press, through other news media, or by posting in a public place, whichever is most feasible.
Former 19 AAC 10.370 (reorganized 1992) provides in part:
SERVICE, (a) The petitioner shall, by certified mail, serve a copy of the petition and brief, together with accompanying exhibits, to every municipality in or adjoining the territory. The service shall be made at the same time that the petition is filed with the [DCRA] commissioner.
Former 19 AAC 10.380 (reorganized 1992) provides in part:
NOTICE OF PETITION, (a) Upon receipt of notice from the [DCRA] that the petition and brief have been accepted, the petitioner shall cause notice of the filing of the petition to be published in a newspaper of general circulation in the territory, or if a newspaper of general circulation is not available, post notice in at least three public and prominent locations....
(b) The petitioner shall furnish the [DCRA] commissioner with proof of compliance with (a) of this section. Upon receipt of the proof, the commissioner shall submit the petition and brief to the [local boundary] commission.
Former 19 AAC 10.400 (reorganized 1992) provides:
CALL FOR HEARING. The [local boundary] commission will establish a time and place for a hearing regarding the proposed incorporation which shall be held in or near the territory proposed for incorporation. The commission will publish notice of the hearing at least 15 days before the date of the hearing, at least three times in a newspaper of general circulation in the territory, through other news media, or by posting in a public place, whichever is most feasible.
2.
Standard of Review.
We review both an agency’s interpretation of its own regulations
and an agency’s exercise of its discretionary authority under the “reasonable basis” standard.
Rose v. Commercial Fisheries Entry Comm’n,
647 P.2d 154, 161 (Alaska 1982);
Mobil Oil Corp. v. Local Boundary Comm’n,
518 P.2d 92, 98 (Alaska 1974);
Kelly v. Zamarello,
486 P.2d 906, 916-17 (Alaska 1971). Moreover, because the superior court acted as an intermediate appellate court, we do not give deference to its decision.
National Bank of Alaska v. State, Dep’t of Revenue,
642 P.2d 811, 816 (Alaska 1982).
3.
Notice of the LBC Hearings Was Defective in This Case.
Villages note that the relevant regulations mandate the following orderly process: a petition is filed; the petitioner must then provide public notice of the petition (filing notice); the petitioner must then provide proof of such notice to the Commissioner; the Commissioner then informs LBC; LBC must then provide public notice of the incorporation hearing (hearing notice). Villages contend that this orderly process was not followed and, as a result, the Borough’s incorporation effort was defective.
The supe
rior court agreed with the Villages and eon-eluded that notice was defective.
The Borough argues that it complied with the requirements of AS 44.47.573, and that the superior court’s interpretation of the regulations is incorrect; no provision requires that the petitioner file notice of the petition
prior to
LBC’s hearing notice. Further, the Borough argues that the superior court erred in concluding that former 19 AAC 10.380(b) and 10.400 link the discrete procedures of filing notice and hearing notice, and that there is no requirement that a petition be “pending” before LBC prior to publication of hearing notice.
Indeed, former 19 AAC 10.380(c) provided:
A petition filed with the commissioner may not be considered to be pending before the commission until the petition and brief have been submitted to the commissioner pursuant to this section.
Absent a link between filing notice and hearing notice, the Borough contends that there was no “contraction” of the notice period. Thus, the Borough concludes that LBC merely had to publish three notices at least fifteen days before the hearing, i.e., on or before November 18.
We agree with the superior court and Villages that published notice of filing the petition and proof of such must precede published notice of the hearing.
The regulations make clear that filing notice, which occurred on November 18, had to
precede
hearing notice:
(1) former 19 AAC 10.370 required the petitioner to file the petition with the commissioner;
(2) former 19 AAC 10.380 required that the petitioner then publish filing notice, and provide proof of the same to the commissioner,
after which the commissioner would submit the petition to LBC;
(3) only at that point could LBC publish hearing notice as required by 19 AAC 10.400.
In this ease the Borough published filing notice as follows:
Borough Post Nov. 18, 25
Bristol Bay Times Nov. 18, 25, Dec. 2
Thus, LBC could not properly have taken steps to notice the hearings until
after November 18.
The regulations also dictate that LBC had to publish three hearing notices at least fifteen days before the hearing, i.e.,
on or before November 18.
The hearing notices were published as follows:
Anchorage Daily News Nov. 16, 17, 18
Borough Post
Nov. 11, 18, 25, Dee. 2
Bristol Bay News Nov. 18, 25.
November 18 is simultaneously the earliest and latest date for three newspaper notices of the hearings. In the words of the superior court, this amounted to a “substantial contraction” of the notice period, and a defect in incorporation.
We agree with Villages and the superior court that the notice violations were substantial.
Accordingly, we affirm that portion of the superior court’s decision and remand to LBC for reconsideration, following the requisite notice procedures.
B.
LACHES
We have recognized laches to be a defense to suits challenging municipal formation.
Pavlik v. State Dep’t of Community & Regional Affairs,
687 P.2d 1045 (Alaska 1981);
Concerned Citizens of S. Kenai Peninsula v. Kenai Peninsula Borough, 527
P.2d 447, 456-58 (Alaska 1974). The defense requires unreasonable delay by a plaintiff resulting in prejudice to the defendant.
Concerned Citizens,
527 P.2d at 457. These concepts exist on a continuum: “where there is a long delay, a lesser degree of prejudice will be required.”
Pavlik,
637 P.2d at 1048.
The superior court rejected the laches defense.
The Borough contends that it erred in doing so, making the following argument. If Villages had properly appealed LBC’s boundary decision pursuant to AS 29.05.100(b), then the case could have been resolved prior to the incorporation election. Instead, Villages filed an independent action, later converted to an appeal, in February 1989. Unreasonable delay occurred as the case “lay dormant” for eighteen months (i.e., from June 1989 until January 1991, when the superior court informed Villages of its intent to dismiss for want of prosecution). Prejudice resulted from the delay because in the interim, “the Borough proceeded with the business of local government.”
Villages respond that “laches is an equitable defense inapplicable to actions at law.”
Gudenau v. Bang,
781 P.2d 1357, 1363 (Alaska 1989);
Kodiak Electric Ass’n v. DeLaval Turbine, Inc.,
694 P.2d 150, 157 (Alaska 1984).
We agree with Villages. In
Kodiak Electric,
we noted “[w]hen a party is seeking to enforce a legal right, as opposed to invoking the discretionary equitable relief of the
courts, the applicable statute of limitations should serve as the sole line of demarcation for the assertion of that right.” 694 P.2d at 157. In this case, Villages’ action was timely filed; the action proceeded at law and the equitable defense of laches was inapplicable.
C.
REMEDIES
1.
Proceedings in the Superior Court.
Following oral argument on November 13, 1992, the superior court “took the issue of remedy under advisement.” The parties agreed that “reconsideration ... should be limited to the precise drawing of the Borough’s northwest boundary.” The Borough and LBC opposed any action that could result in disincorporation. They favored detachment. Villages opposed detachment because the standards for detachment are more stringent than those applicable to incorporation.
The superior court concluded that detachment was not a viable remedy:
[I]t is readily apparent that the Local Boundary Commission could determine that different boundaries are warranted under the more general incorporation standards, but that detachment would not be justified under the narrow criteria of the applicable regulation.
It concluded that the proper remedy was an election limited to the placement of the northwest boundary.
The Borough moved for reconsideration seeking,
inter alia,
clarification of the mean-mg of “restricted” election.
The court denied the motion, but stated that
the reconsideration process ... starts from the premise that the existing boundary ... is in place. The Commission and Borough residents will ultimately have to decide whether to maintain or alter the existing boundary. It was not the court’s intention that the voters be presented with the choice of no northwest boundary, and thus no borough.
The Borough requested further clarification of “the nature of any election that would be held in the event the LBC determines that the northwest boundary should change.” The court emphasized that “any change in borough boundaries must be approved by the electorate,” rather than LBC, but again noted that “any election would have to be limited to approval or disapproval of a change in the borough’s northwest boundary.”
2.
The Superior Court Erred in Formulating a Remedy.
The superior court’s final order regarding remedy provides:
Should the LBC decide that the northwest boundary of the [Borough] should remain unchanged, no election would be required; should the Commission decide otherwise, an election restricted to approval of the new boundary versus retention of the existing boundary would be required.
Villages cross-appeal the superior court’s decision. The issue concerns only the situa
tion in which, upon reconsideration, LBC changes the boundary to exclude the Nusha-gak watershed. Villages argue that Borough voters should be given a choice of “changed boundary or no borough.” The Borough responds that the superior court correctly defined the election as a choice of “changed boundary or previous boundary.”
Villages argue that “boundary decisions should be made by the Local Boundary Commission or the Legislature, not the voters.”
See City of Douglas v. City & Borough of Juneau,
484 P.2d 1040, 1042-43 (Alaska 1971);
Oesau v. City of Dillingham,
439 P.2d 180, 183-84 (Alaska 1968);
Fairview Pub. Util. Dist. No. 1 v. City of Anchorage,
368 P.2d 540, 543 (Alaska),
cert. denied,
371 U.S. 5, 83 S.Ct. 39, 9 L.Ed.2d 49 (1962). They conclude that “[t]he superior court’s decision to essentially remand this matter back to Borough voters goes against the [Alaska CJonstitution, the statutes, and indeed the very purpose of the LBC.”
We agree. It does not appear that a municipality can ignore an LBC boundary decision. An election permitting voters to choose between two boundaries essentially allows the electorate to establish the boundary without regard to LBC’s action on reconsideration. In
Fairview,
this court examined the purpose of Article X of the Alaska Constitution and determined that “local political decisions do not usually create proper boundaries and that boundaries should be established at the state level.”
368 P.2d at 543;
accord
1 Dallas Sands et al.,
Local Government Law
§ 8.29 (1994).
The Borough argues that detachment is the proper remedy. Villages respond that the
detachment
standard differs from the
incorporation
standard. The standard for incorporation is found in AS 29.05.031(a)(2), which provides in part:
[T]he boundaries of the proposed borough [must] conform generally to natural geography and include all areas necessary for full development of municipal services.
The standard for detachment applicable at the time Villages filed suit was found in 19 AAC 10.230(a)(2) (reorganized 1992), which provided in part:
In determining whether to approve a detachment, the commission will consider, but is not limited to ... whether the geographic location or configuration of the territory precludes the provision of borough services provided other areas of the borough or makes the provision of borough services impractical....
Villages express two concerns regarding the differing standards:
There is no mention of natural geography in the detachment regulation nor any provision that makes it likely that the concerns of an unincorporated borough would be heard. Moreover, there remains the question of which party would carry the burden of proof. Under the statutory incorporation standards, the Borough incor-porators have to justify the inclusion of all the territory which they wish [to] incorporate. Under the detachment regulations, previous compliance with the incorporation standards is presumed.
We agree that detachment mil not adequately remedy Villages’ concerns. In fashioning a remedy, the superior court was guided by
Alaska Community Colleges’ Federation of Teachers v. University of Alaska (ACCFT), 677
P.2d 886 (Alaska 1984), and its direction that “approximation of the status quo at the time of the original decision is desirable.”
Id.
at 890. However, the court recognized the difference between an “ideal” remedy and a “practical” remedy, and cautioned that “the damage to the public good” should not outweigh the “benefits derived” from the remedial action.
Id.
at 890, 892.
We hold that under
ACCFT,
an election between no borough or a borough excluding the Nushagak watershed will best approximate the status quo.
See 677
P.2d at 890. The prospect that the Borough will not be incorporated does not constitute “damage to the public good” outweighing the benefits of remedying the notice violations.
See id.
at 891-92.
III.
CONCLUSION
We AFFIRM the court’s conclusion that notice was defective and did not substantially colorably comply with the requirements. Accordingly, we REMAND the case to LBC for consideration of whether LBC complied with the statutes addressing municipal boundary determination. This consideration can be undertaken only after all statutory requirements have been met.
If LBC does not change the boundary, no new election will be required. However, if LBC changes the boundary, then the Borough must hold an election in which voters would have to choose either (1) to incorporate according to the changed boundary, or (2) not to incorporate. Thus, we REVERSE the superior court’s formulation of a remedy in this case.
AFFIRMED in part, REVERSED in part, and REMANDED for further proceedings.