Diskit falls under the administrative jurisdiction of the Union Territory of Ladakh, which is governed by a Lieutenant Governor appointed by the central Government of India.
At the local level, Diskit is the headquarters of the Nubra block and is administered by the Leh Autonomous Hill Development Council (LAHDC). The LAHDC is an elected body that handles localized governance, rural development, health, education, and public works. The town is represented by local councilors who advocate for the Nubra Valley's specific infrastructural and economic needs. Village-level matters are often mediated by the traditional Panchayat system, working in tandem with the administrative officers (like the Sub-Divisional Magistrate stationed in Diskit).