The twice-defeated town of James Island could rise once again, thanks to sweeping changes to municipal incorporation rules approved by the General Assembly on Thursday.

Charleston, however, is preparing to fight the town's expected third incorporation effort, with Mayor Joe Riley vowing to challenge the constitutionality of the new rules written for James Island's benefit.

The town's prior incorporations were overturned by the courts following challenges by Charleston, which has been annexing portions of James Island since 1973.

The last town of James Island was dissolved in January, following a state Supreme Court ruling. The town's offices in a Camp Road strip mall are now a pizza parlor. The town's $3.5 million in unspent tax money is being divided among other municipalities, including Charleston.

If Gov. Mark Sanford signs the bill, former James Island Councilman Joe Qualey said a petition drive aimed at re-forming the town would get under way quickly.

"Within a matter of six to eight weeks, we'll be preparing for an election," he said.

A change in state law is needed for James Island to form a town because current rules say new municipalities aren't allowed to form within five miles of existing ones. Also, those who hope to form a town of James Island want to include areas that don't share a common border, which current law also forbids.

The bill heading for Sanford's desk waives the five-mile rule for new towns with at least 7,000 residents.

It also would let unconnected properties be part of the same town if they are separated only by certain public lands or waters. That provision is tailor-made for James Island, where annexations by Charleston have divided unincorporated areas.

The South Carolina Municipal Association fears the bill's provisions could open a Pandora's Box of incorporations, with new towns popping up all over the state.

Qualey likes the sound of that. "If that's what happens, it can only be a good thing," he said. "Government by the people and of the people is the basis of our society."

Howard Duvall of the Municipal Association warned of unintended consequences, saying that regional planning efforts could be thwarted by new "paper towns" with loose regulations.

The courts could have the final say on the new rules, if Charleston sues as promised.

Qualey, an attorney, said that because the rules apply statewide, the legislation should pass constitutional challenges.

"The legislation is as artfully drafted as it can possibly be," he said. "At some point, people will realize how ridiculous it is for Joe Riley to continue to fight over land the people have rejected him from."

Riley said the bill is, in his view, clearly unconstitutional because it was written for a special purpose and because the provision allowing a town to incorporate across land or water in a different municipality is not rational.

"The law in South Carolina is that a bill must be general in nature and have a rational basis," the mayor said. "This is a law to allow a municipality to be formed where the general laws of South Carolina don't allow that."

The bill, sponsored by Senate leader Glenn McConnell, R-Charleston, passed the House 81-20, with all but two in the local delegation voting in favor of the measure.

"I'm very excited," said Rep. Wallace Scarborough, a Charleston Republican who lives on James Island. "We will be able to pick up right where we left off."

Riley visited Columbia numerous times in recent weeks to lobby lawmakers to vote against the bill, but the Charleston delegation got its way. Debate on the bill was limited, as Scarborough pushed for a vote.

"It seems like we weren't supposed to talk about it," said Rep. Laurie Funderburk, D-Camden. "Some people referred to it as being on the tracks."

Most lawmakers understood the bill was directed at the Charleston area, and few raised questions about the bill's statewide impact.

"We haven't been able to get any traction with our arguments," Duvall said.

Rep. Floyd Breeland, D-Charleston, was one of the two local lawmakers to vote against the bill.

"I think the court has ruled on this issue before, but they are still fighting it," he said. "I live in Charleston . and I support Charleston's (efforts)."

The bill will receive a final reading in the House on Tuesday and then go to the governor's desk.