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An ornamental key is presented to esteemed visitors, residents, or others the city wishes to honor. Evoking medieval walled cities whose gates were guarded during the day and locked at night, the key symbolizes the freedom of the recipient to enter and leave the city at will as a trusted friend of city residents.
In the Netherlands and some cities in Belgium and Germany, the key to the city is given to the so-called "Prince carnival", which leads the carnivals which take place the week prior to Septuagesima. The tradition is that the mayor steps down for the days, and so the power is transferred to the prince carnival, which returns the key at the end of Shrove Tuesday/Mardi Gras. Today, the handing over of the key is mostly symbolic and marks the start and end of the carnival.
Via Wikipedia
http://en.wikipedia.org/wiki/Freedom_of_the_City#Key_to_the_City
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