Chamba is governed locally by a Municipal Council (Nagar Parishad), which oversees civic amenities, sanitation, and urban planning. The council comprises elected ward members (councilors) led by a Municipal President or Chairperson.
As the headquarters of the Chamba district, the city also hosts the district administration, headed by a Deputy Commissioner (DC) appointed by the Indian Administrative Service (IAS). The DC is responsible for broader law and order, revenue collection, and development projects. Politically, Chamba is part of the Chamba State Legislative Assembly constituency, sending an MLA to the Himachal Pradesh Vidhan Sabha, and falls under the Kangra parliamentary constituency for representation in the national Lok Sabha.