Aalo is administered by the district administration of West Siang, headed by a Deputy Commissioner who oversees law and order, development, and revenue collection. Local civic amenities and urban planning are managed by a town committee or municipal body.
Politically, the town falls under the jurisdiction of the Arunachal Pradesh Legislative Assembly, electing representatives from constituencies such as Along East and Along West. On a national level, it is part of the Arunachal West Lok Sabha constituency.
Public services, including healthcare, water supply, and public works, are managed by various departments of the state government. Aalo also hosts significant defense infrastructure, notably the Indian Army and the Indian Air Force, which operate the Aalo Advanced Landing Ground for strategic and logistical purposes.