diff --git a/src/registrar/config/urls.py b/src/registrar/config/urls.py
index fe02d389f..d8d61ac87 100644
--- a/src/registrar/config/urls.py
+++ b/src/registrar/config/urls.py
@@ -27,6 +27,7 @@ for step, view in [
     (Step.ORGANIZATION_FEDERAL, views.OrganizationFederal),
     (Step.ORGANIZATION_ELECTION, views.OrganizationElection),
     (Step.ORGANIZATION_CONTACT, views.OrganizationContact),
+    (Step.TYPE_OF_WORK, views.TypeOfWork),
     (Step.AUTHORIZING_OFFICIAL, views.AuthorizingOfficial),
     (Step.CURRENT_SITES, views.CurrentSites),
     (Step.DOTGOV_DOMAIN, views.DotgovDomain),
diff --git a/src/registrar/forms/application_wizard.py b/src/registrar/forms/application_wizard.py
index 28118ed53..6059d1a6f 100644
--- a/src/registrar/forms/application_wizard.py
+++ b/src/registrar/forms/application_wizard.py
@@ -151,7 +151,7 @@ class OrganizationContactForm(RegistrarForm):
                 raise forms.ValidationError(
                     "Please select your federal agency.", code="required"
                 )
-        if self.application.is_federal:
+        if self.application.is_federal():
             if not federal_agency:
                 # no answer was selected
                 raise forms.ValidationError(
@@ -160,6 +160,17 @@ class OrganizationContactForm(RegistrarForm):
         return federal_agency
 
 
+class TypeOfWorkForm(RegistrarForm):
+    type_of_work = forms.CharField(
+        label="What type of work does your organization do?", widget=forms.Textarea()
+    )
+
+    more_organization_information = forms.CharField(
+        label="Describe how your organization is a government organization that is independent of a state government. Include links to authorizing legislation, applicable bylaws or charter, or other documentation to support your claims.",
+        widget=forms.Textarea(),
+    )
+
+
 class AuthorizingOfficialForm(RegistrarForm):
     def to_database(self, obj):
         if not self.is_valid():
diff --git a/src/registrar/migrations/0007_domainapplication_more_organization_information_and_more.py b/src/registrar/migrations/0007_domainapplication_more_organization_information_and_more.py
new file mode 100644
index 000000000..dfdadc618
--- /dev/null
+++ b/src/registrar/migrations/0007_domainapplication_more_organization_information_and_more.py
@@ -0,0 +1,131 @@
+# Generated by Django 4.1.5 on 2023-01-10 20:12
+
+from django.db import migrations, models
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ("registrar", "0006_alter_contact_phone"),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name="domainapplication",
+            name="more_organization_information",
+            field=models.TextField(
+                blank=True,
+                help_text="Further information about the government organization",
+                null=True,
+            ),
+        ),
+        migrations.AddField(
+            model_name="domainapplication",
+            name="type_of_work",
+            field=models.TextField(
+                blank=True, help_text="Type of work of the organization", null=True
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="address_line1",
+            field=models.TextField(blank=True, help_text="Street address", null=True),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="address_line2",
+            field=models.CharField(
+                blank=True, help_text="Street address line 2", max_length=15, null=True
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="federal_agency",
+            field=models.TextField(blank=True, help_text="Federal agency", null=True),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="federal_type",
+            field=models.CharField(
+                blank=True,
+                choices=[
+                    ("executive", "Executive"),
+                    ("judicial", "Judicial"),
+                    ("legislative", "Legislative"),
+                ],
+                help_text="Federal government branch",
+                max_length=50,
+                null=True,
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="organization_type",
+            field=models.CharField(
+                blank=True,
+                choices=[
+                    (
+                        "federal",
+                        "Federal: an agency of the U.S. government's executive, legislative, or judicial branches",
+                    ),
+                    ("interstate", "Interstate: an organization of two or more states"),
+                    (
+                        "state_or_territory",
+                        "State or territory: one of the 50 U.S. states, the District of Columbia, American Samoa, Guam, Northern Mariana Islands, Puerto Rico, or the U.S. Virgin Islands",
+                    ),
+                    (
+                        "tribal",
+                        "Tribal: a tribal government recognized by the federal or a state government",
+                    ),
+                    ("county", "County: a county, parish, or borough"),
+                    ("city", "City: a city, town, township, village, etc."),
+                    (
+                        "special_district",
+                        "Special district: an independent organization within a single state",
+                    ),
+                    (
+                        "school_district",
+                        "School district: a school district that is not part of a local government",
+                    ),
+                ],
+                help_text="Type of Organization",
+                max_length=255,
+                null=True,
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="purpose",
+            field=models.TextField(
+                blank=True, help_text="Purpose of your domain", null=True
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="state_territory",
+            field=models.CharField(
+                blank=True,
+                help_text="State, territory, or military post",
+                max_length=2,
+                null=True,
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="urbanization",
+            field=models.TextField(
+                blank=True, help_text="Urbanization (Puerto Rico only)", null=True
+            ),
+        ),
+        migrations.AlterField(
+            model_name="domainapplication",
+            name="zipcode",
+            field=models.CharField(
+                blank=True,
+                db_index=True,
+                help_text="Zip code",
+                max_length=10,
+                null=True,
+            ),
+        ),
+    ]
diff --git a/src/registrar/models/domain_application.py b/src/registrar/models/domain_application.py
index ab59192ac..6218a1ecc 100644
--- a/src/registrar/models/domain_application.py
+++ b/src/registrar/models/domain_application.py
@@ -350,6 +350,18 @@ class DomainApplication(TimeStampedModel):
         help_text="Urbanization (Puerto Rico only)",
     )
 
+    type_of_work = models.TextField(
+        null=True,
+        blank=True,
+        help_text="Type of work of the organization",
+    )
+
+    more_organization_information = models.TextField(
+        null=True,
+        blank=True,
+        help_text="Further information about the government organization",
+    )
+
     authorizing_official = models.ForeignKey(
         "registrar.Contact",
         null=True,
@@ -474,6 +486,14 @@ class DomainApplication(TimeStampedModel):
         ]
         return bool(user_choice and user_choice not in excluded)
 
+    def show_type_of_work(self) -> bool:
+        """Show this step if this is a special district or interstate."""
+        user_choice = self.organization_type
+        return user_choice in [
+            DomainApplication.OrganizationChoices.SPECIAL_DISTRICT,
+            DomainApplication.OrganizationChoices.INTERSTATE,
+        ]
+
     def is_federal(self) -> Union[bool, None]:
         """Is this application for a federal agency?
 
diff --git a/src/registrar/templates/application_review.html b/src/registrar/templates/application_review.html
index 5b3ce7e3b..2c8bf874c 100644
--- a/src/registrar/templates/application_review.html
+++ b/src/registrar/templates/application_review.html
@@ -30,6 +30,10 @@
               Incomplete
             {% endif %}
           {% endif %}
+          {% if step == Step.TYPE_OF_WORK %}
+            <p>{{ application.type_of_work|default:"Incomplete" }}</p>
+            <p>{{ application.more_organization_information|default:"Incomplete" }}</p>
+          {% endif %}
           {% if step == Step.AUTHORIZING_OFFICIAL %}
             {% if application.authorizing_official %}
               {% include "includes/contact.html" with contact=application.authorizing_official %}
diff --git a/src/registrar/templates/application_type_of_work.html b/src/registrar/templates/application_type_of_work.html
new file mode 100644
index 000000000..8bc0ddd6e
--- /dev/null
+++ b/src/registrar/templates/application_type_of_work.html
@@ -0,0 +1,57 @@
+<!-- Test page -->
+{% extends 'application_form.html' %}
+{% load widget_tweaks %}
+
+{% block form_content %}
+
+<form id="step__{{steps.current}}" class="usa-form usa-form--large" method="post" novalidate>
+  <div class="usa-form-group">
+    {% csrf_token %}
+
+    <div class="usa-character-count">
+      {% with field=forms.0.type_of_work %}
+      {% if field.errors %}
+        <div class="usa-form-group usa-form-group--error">
+          {{ field|add_label_class:"usa-label usa-label--error" }}
+          {% for error in field.errors %}
+            <span class="usa-error-message" id="input-error-message" role="alert">
+              {{ error }}
+            </span>
+          {% endfor %}
+          {{ field|add_class:"usa-input--error usa-textarea usa-character-count__field"|attr:"aria-describedby:instructions"|attr:"maxlength=500"|attr:"aria-invalid:true" }}
+        </div>
+      {% else %}
+        {{ field|add_label_class:"usa-label" }}
+        {{ field|add_class:"usa-textarea usa-character-count__field"|attr:"aria-describedby:instructions"|attr:"maxlength=500" }}
+      {% endif %}
+      {% endwith %}
+      <span class="usa-character-count__message" id="with-hint-textarea-info with-hint-textarea-hint"> You can enter up to 500 characters </span>
+    </div>
+  </div>
+
+  <div class="usa-form-group">
+    <div class="usa-character-count">
+      {% with field=forms.0.more_organization_information %}
+      {% if field.errors %}
+        <div class="usa-form-group usa-form-group--error">
+          {{ field|add_label_class:"usa-label usa-label--error" }}
+          {% for error in field.errors %}
+            <span class="usa-error-message" id="input-error-message" role="alert">
+              {{ error }}
+            </span>
+          {% endfor %}
+          {{ field|add_class:"usa-input--error usa-textarea usa-character-count__field"|attr:"aria-describedby:instructions"|attr:"maxlength=500"|attr:"aria-invalid:true" }}
+        </div>
+      {% else %}
+        {{ field|add_label_class:"usa-label" }}
+        {{ field|add_class:"usa-textarea usa-character-count__field"|attr:"aria-describedby:instructions"|attr:"maxlength=500" }}
+      {% endif %}
+      {% endwith %}
+      <span class="usa-character-count__message" id="with-hint-textarea-info with-hint-textarea-hint"> You can enter up to 500 characters </span>
+    </div>
+  </div>
+  {{ block.super }}
+
+</form>
+
+{% endblock %}
diff --git a/src/registrar/tests/test_views.py b/src/registrar/tests/test_views.py
index f511a0f33..d6e4f5035 100644
--- a/src/registrar/tests/test_views.py
+++ b/src/registrar/tests/test_views.py
@@ -8,7 +8,7 @@ from django.contrib.auth import get_user_model
 from django_webtest import WebTest  # type: ignore
 
 from registrar.models import DomainApplication, Domain, Contact, Website
-from registrar.views.application import ApplicationWizard
+from registrar.views.application import ApplicationWizard, Step
 
 from .common import less_console_noise
 
@@ -120,7 +120,7 @@ class DomainApplicationTests(TestWithUser, WebTest):
         this test work.
         """
         num_pages_tested = 0
-        SKIPPED_PAGES = 1  # elections
+        SKIPPED_PAGES = 2  # elections, type_of_work
         num_pages = len(self.TITLES) - SKIPPED_PAGES
 
         type_page = self.app.get(reverse("application:")).follow()
@@ -660,6 +660,82 @@ class DomainApplicationTests(TestWithUser, WebTest):
             0,
         )
 
+    def test_application_form_nonfederal(self):
+        """Non-federal organizations don't have to provide their federal agency."""
+        type_page = self.app.get(reverse("application:")).follow()
+        # django-webtest does not handle cookie-based sessions well because it keeps
+        # resetting the session key on each new request, thus destroying the concept
+        # of a "session". We are going to do it manually, saving the session ID here
+        # and then setting the cookie on each request.
+        session_id = self.app.cookies[settings.SESSION_COOKIE_NAME]
+
+        type_form = type_page.form
+        type_form["organization_type-organization_type"] = DomainApplication.OrganizationChoices.INTERSTATE
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        type_result = type_page.form.submit()
+
+        # follow first redirect
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        contact_page = type_result.follow()
+        org_contact_form = contact_page.form
+
+        self.assertNotIn("federal_agency", org_contact_form.fields)
+
+        # minimal fields that must be filled out
+        org_contact_form["organization_contact-organization_name"] = "Testorg"
+        org_contact_form["organization_contact-address_line1"] = "address 1"
+        org_contact_form["organization_contact-city"] = "NYC"
+        org_contact_form["organization_contact-state_territory"] = "NY"
+        org_contact_form["organization_contact-zipcode"] = "10002"
+
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        contact_result = org_contact_form.submit()
+
+        # the post request should return a redirect to the type of work page
+        # if it was successful.
+        self.assertEquals(contact_result.status_code, 302)
+        self.assertEquals(contact_result["Location"], "/register/type_of_work/")
+
+
+    def test_application_type_of_work_special(self):
+        """Special districts have to answer an additional question."""
+        type_page = self.app.get(reverse("application:")).follow()
+        # django-webtest does not handle cookie-based sessions well because it keeps
+        # resetting the session key on each new request, thus destroying the concept
+        # of a "session". We are going to do it manually, saving the session ID here
+        # and then setting the cookie on each request.
+        session_id = self.app.cookies[settings.SESSION_COOKIE_NAME]
+
+        type_form = type_page.form
+        type_form["organization_type-organization_type"] = DomainApplication.OrganizationChoices.SPECIAL_DISTRICT
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        type_result = type_page.form.submit()
+        # follow first redirect
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        contact_page = type_result.follow()
+
+        self.assertContains(contact_page, self.TITLES[Step.TYPE_OF_WORK]) 
+
+    def test_application_type_of_work_interstate(self):
+        """Special districts have to answer an additional question."""
+        type_page = self.app.get(reverse("application:")).follow()
+        # django-webtest does not handle cookie-based sessions well because it keeps
+        # resetting the session key on each new request, thus destroying the concept
+        # of a "session". We are going to do it manually, saving the session ID here
+        # and then setting the cookie on each request.
+        session_id = self.app.cookies[settings.SESSION_COOKIE_NAME]
+
+        type_form = type_page.form
+        type_form["organization_type-organization_type"] = DomainApplication.OrganizationChoices.INTERSTATE
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        type_result = type_page.form.submit()
+        # follow first redirect
+        self.app.set_cookie(settings.SESSION_COOKIE_NAME, session_id)
+        contact_page = type_result.follow()
+
+        self.assertContains(contact_page, self.TITLES[Step.TYPE_OF_WORK]) 
+
+
     @skip("WIP")
     def test_application_edit_restore(self):
         """
diff --git a/src/registrar/views/application.py b/src/registrar/views/application.py
index 713e9261b..3d210d862 100644
--- a/src/registrar/views/application.py
+++ b/src/registrar/views/application.py
@@ -27,6 +27,7 @@ class Step(StrEnum):
     ORGANIZATION_FEDERAL = "organization_federal"
     ORGANIZATION_ELECTION = "organization_election"
     ORGANIZATION_CONTACT = "organization_contact"
+    TYPE_OF_WORK = "type_of_work"
     AUTHORIZING_OFFICIAL = "authorizing_official"
     CURRENT_SITES = "current_sites"
     DOTGOV_DOMAIN = "dotgov_domain"
@@ -70,6 +71,7 @@ class ApplicationWizard(LoginRequiredMixin, TemplateView):
         Step.ORGANIZATION_FEDERAL: _("Type of organization — Federal"),
         Step.ORGANIZATION_ELECTION: _("Type of organization — Election board"),
         Step.ORGANIZATION_CONTACT: _("Organization name and mailing address"),
+        Step.TYPE_OF_WORK: _("Type of Work"),
         Step.AUTHORIZING_OFFICIAL: _("Authorizing official"),
         Step.CURRENT_SITES: _("Organization website"),
         Step.DOTGOV_DOMAIN: _(".gov domain"),
@@ -93,6 +95,7 @@ class ApplicationWizard(LoginRequiredMixin, TemplateView):
         Step.ORGANIZATION_ELECTION: lambda w: w.from_model(
             "show_organization_election", False
         ),
+        Step.TYPE_OF_WORK: lambda w: w.from_model("show_type_of_work", False),
     }
 
     def __init__(self):
@@ -353,6 +356,11 @@ class OrganizationContact(ApplicationWizard):
         return context
 
 
+class TypeOfWork(ApplicationWizard):
+    template_name = "application_type_of_work.html"
+    forms = [forms.TypeOfWorkForm]
+
+
 class AuthorizingOfficial(ApplicationWizard):
     template_name = "application_authorizing_official.html"
     forms = [forms.AuthorizingOfficialForm]