The Village Management Board of Sedgefield was established in terms of Proclamation No 143 of 1967 and the first meeting of the Board was held on 31 July 1968 (3/SGD 1/1/1/1).

With effect from 1 January 1974 the Sedgefield Village Management Board was abolished and a new municipality established with the same boundaries as those of the former village management board area (The Province of the Cape of Good Hope Official Gazette No 3740, 31 August 1973, Proclamation No 307, 17 August 1973).

In terms of the Local Government Transition Act, 1993 (Act 209 of 1993) the local government bodies within the Sedgefield Forum Area, namely the Municipality of Sedgefield, Smutsville Management Committee and Buffalo Bay Local Council, was dissolved with effect from 1 December 1994 and the Sedgefield Transitional Local Council established (Province of Western Cape Provincial Gazette Extraordinary No 4896, 30 November 1994, Proclamation No 87, 29 November 1994). In terms of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) the existing Sedgefield Transitional Local Council together with other municipalities was disestablished and the Knysna Local Municipality established (Province of Western Cape Provincial Gazette Extraordinary No 5592, 22 September 2000, Provincial Notice No 504, 22 September 2000). The Knysna Local Municipality forms part of the larger Eden District Municipality.

The Municipality of Knysna was constituted on 12 October 1881 under provision of proclamation No 169 in terms of Ordinance No 9 of 1836.

In terms of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) the existing Municipality of Knysna, Sedgefield Transitional Local Council, Belvidere Estate Transitional Local Council, Brenton Transitional Local Council, Knoetzie Transitional Local Council, Outeniqua Transitional Representative Council and Rheenendal Transitional Local Council was disestablished and the Knysna Local Municipality established (Province of Western Cape Provincial Gazette Extraordinary No 5592, 22 September 2000, Provincial Notice No 504, 22 September 2000). The Knysna Local Municipality forms part of the larger Garden Route (formerly Eden) District Municipality.