The work of the Department of Local Government consisted of general supervision and guidance of the activities of local authorities, by-laws, holding of auditing accounts, perusing of alterations, recommending approval of some appointments.

Following on from recommendations handed down by the Machinery of Government Taskforce, the functions of the Department of Local Government were merged with the regional functions of the former Department of Commerce and Trade on 1 July 2001 to form a new department - the Department of Local Government and Regional Development.