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The Village Management Board of Umtata was established in terms of Act 29 of 1881.

The Municipality of Umtata was constituted on 21 October 1882 under provision of Proclamation No 192, 1882 in terms of Act No 44 of 1882 (Cape of Good Hope Government Gazette, No 6303, 27 October 1882).

In 1976, Transkei was granted independence as a bantustan, a nominally independent state not recognised outside of South Africa, and Umtata served as the capital.

On 2 March 2004 Umtata was renamed "Mthatha". Mthatha is the main town of the King Sabata Dalindyebo Local Municipality in the Eastern Cape Province and the capital of OR Tambo District Municipality.