Campbell Bay is governed under the administrative framework of the Andaman and Nicobar Islands, a Union Territory of India, which is directly administered by the Central Government in New Delhi through a Lieutenant Governor.
Locally, Campbell Bay serves as the headquarters of the Great Nicobar sub-division, overseen by an Assistant Commissioner who acts on behalf of the district administration (headquartered in Car Nicobar). Law enforcement is managed by the Andaman and Nicobar Police.
At the grassroots level, local governance is handled by the Gram Panchayat system, which oversees civic amenities, sanitation, and village development. A significant portion of the area also falls under the jurisdiction of the Andaman and Nicobar Command (ANC) of the Indian Armed Forces, which manages defense installations like INS Baaz.