The City of Red Oak has both an Economic Development Corporation (EDC) (Type B) and an Industrial Development Corporation (IDC) (Type A). The EDC provides incentives to attract new business to the Red Oak community or to expand existing business. EDC also funds infrastructure improvements, such as street, water, and sewer improvememts. IDC provides incentives to encourage exisiting industry and business to expand or to attract new industry and business to the Red Oak community.