The Village Management Board of Prince Albert was established on 3 October 1881 under provision of Proclamation No 160 of 1881 in terms of the Village Management Act of 1881.

The Municipality of Prince Albert was constituted on 24 December 1901 under provision of Proclamation No 193 of 1901 in terms of Municipal Act, 1882. In terms of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) the existing Municipality of Prince Albert together with the Laingsburg Transitional Representative Council, Transitional Local Council of Leeu Gamka and the Prince Albert Transitional Representative Council was disestablished and the Prince Albert Local Municipality established (Province of Western Cape Provincial Gazette Extraordinary No 5593, 22 September 2000, Provincial Notice No 507, 22 September 2000). The Prince Albert Local Municipality forms part of the larger Central Karoo District Municipality.