Moti Daman is the administrative nerve center of the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
Because it is a Union Territory, it is governed directly by the Central Government of India through an Administrator appointed by the President of India. The Secretariat, the official workplace of the Administrator and key bureaucrats, is located within the Moti Daman Fort.
At the local level, civic administration is handled by the Daman Municipal Council. The territory falls under the Daman and Diu Lok Sabha constituency, electing one Member of Parliament to the lower house of the Indian Parliament.