Diu is governed locally by the Diu Municipal Council, which manages civic amenities, urban planning, sanitation, and local public services.
On a higher administrative level, Diu is a district within the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Unlike Indian states, Union Territories are governed directly by the federal government of India. An Administrator, appointed by the President of India, oversees the territory from the capital in Daman. For national political representation, Diu shares a parliamentary constituency with Daman, electing one Member of Parliament (MP) to the Lok Sabha (the lower house of India's parliament).

