An extremely important power of every state legislature is the creation of political subdivisions within the state itself: namely, the counties. The Virginia Constitution specifically provides for the formation, division and consolidation of counties. A new county must have a minimum area of 600 square miles and the county or counties from which it is formed cannot be less than 600 square miles after the new county has been formed. No county can be reduced in population below 8,000 people. Whenever any county has a length three times its breadth, or has a length exceeding fifty miles, it may be divided at the discretion of the General Assembly. Such added length can occur as a result of boundary changes or the annexation of territory. The General Assembly may consolidate existing counties upon the approval of a majority of the qualified voters of each of these counties voting as a result of an election held for this specific purpose. If the majority do not vote approval of consolidation, such consolidation cannot take place.

Virginia had eight counties originally, dating from 1634: Accawmack (now known as Accomack and Northampton), Charles City (now known as Prince George County), Charles River (now known as York County), Elizabeth City (ceased as a county in 1952), Henrico, James City (now known as Surry County), Wamosquyoake (no longer in existence—existed only from 1634-1637) and Warwick River (known as Warwick but ceased as a county in 1952). In 1648, an Indian district called Chickacoan was formed into the County of Northumberland. From these nine counties eventually 172 counties were created, with the largest number, 116, created from Northumberland. The last change in the number of counties occurred in 1952 when both Elizabeth City County and Warwick County became first class independent cities, thus relinquishing county status. At the present time, there are 98 counties in Virginia. Furthermore, since 1788, nine counties became part of the present state of Kentucky, fifty counties became part of the present state of West Virginia and fifteen counties (including the two mentioned previously) went out of existence through consolidation or other methods. The General Assembly has exercised and will continue to exercise its power of county-making in Virginia.

In the Virginia Supreme Court case of Moss versus County of Tazewell, the decision stated that "the power of the legislature of the State is supreme, except so far as it is restrained by State or Federal Constitution." Therefore, a State constitution is usually considered as a restraining agreement whereby the Federal Constitution is considered as a granting agreement. Thus, the legislative body of a State has all the powers not prohibited to it by the State or Federal Constitution. A State constitution is often, therefore, a summary of what the state legislative body may not do. The Virginia Constitution specifically states that "the authority of the General Assembly shall extend to all subjects of legislation, not herein forbidden or unrestricted; and a specific grant of authority in this Constitution upon a subject shall not work a restriction of its authority upon the same or any other subject." The principles described are further emphasized in this quotation from the Virginia Constitution which follows: "The omission in this Constitution of specific grants of authority heretofore conferred shall not be construed to deprive the General Assembly of such authority, or to indicate a change of policy in reference thereto, unless such purpose plainly appear."

There are several limitations placed upon the General Assembly by the Constitution: the General Assembly cannot enact any local, special or private law in the following instances (but can enact general laws in the same instances):

(1) for the punishment of crime,

(2) for providing a change of venue (the place where a trial is held) in civil or criminal cases,

(3) for regulating the jurisdiction of, or changing the rules of, evidence in any judicial proceeding,

(4) for changing county seats,

(5) for assessing and collecting taxes and for extending the time for assessment or collection of taxes,

(6) for exempting property from taxation,