Fourteen teams participated in the 2007–08 Cypriot Third Division.
The team with the most points at the end of the season crowned champions.
The first three teams were promoted to the 2008–09 Cypriot Second Division and the last three teams were relegated to the 2008–09 Cypriot Fourth Division.
Teams promoted to 2007–08 Cypriot Second Division Teams relegated from 2006–07 Cypriot Second Division 1AEM Mesogis merged with Kissos Kissonergas forming Kissos Kissonergas, which took the place of AEM Mesogis in the Cypriot Third Division.
Teams promoted from 2006–07 Cypriot Fourth Division Teams relegated to 2007–08 Cypriot Fourth Division