Tezu serves as the administrative headquarters of the Lohit District. The local government is headed by a Deputy Commissioner (DC), an Indian Administrative Service (IAS) officer responsible for law and order, revenue, and district development.
Civic amenities and local town administration are managed by the urban local body and district administration departments. Politically, Tezu falls under the Tezu-Sunpura Assembly Constituency, which elects one representative to the Arunachal Pradesh Legislative Assembly. At the national level, it is part of the Arunachal East Lok Sabha constituency. The town also has a significant presence of the Indian Army and the Indo-Tibetan Border Police (ITBP) due to its proximity to the international border.