The district is administered by the Dzongkhag Administration, which is headed by a Dzongdag (District Governor) appointed by the King of Bhutan. The local government operates out of the historic Rinpung Dzong, symbolizing the Bhutanese tradition of a dual system of government that houses both civil administration and monastic bodies under one roof.
Paro is subdivided into 10 *gewogs* (village blocks or counties): Doteng, Dogar, Dopshari, Hoongrel, Lamgong, Lungnyi, Naja, Shapa, Tsento, and Wangchang. Each gewog is governed by an elected *Gup* (headman) who represents the community at the Dzongkhag Tshogdu (District Council). This decentralized system ensures that local voices influence the planning and distribution of public services, infrastructure, and agricultural support.