city limit vs demarcation

city limit and demarcation both are nouns.

Word	Noun	Adjective	Verb	Adverb
city limit	Yes	No	No	No
demarcation	Yes	No	No	No

As nouns, demarcation is a hypernym of city limit; that is, demarcation is a word with a broader meaning than city limit:

Other hypernyms of city limit include demarcation line, limit.

city limit (noun)	demarcation (noun)
the limits of the area occupied by a city or town	a conceptual separation or distinction
	the boundary of a specific area