Fourteen teams participated in the 2011–12 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 2012–13 Cypriot Second Division and the last three teams were relegated to the 2012–13 Cypriot Fourth Division.
However, in the summer, because APOP Kinyras (which would participate in the 2012–13 Cypriot Third Division) was relegated to the 2012–13 Cypriot Fourth Division after FIFA's decision, the 12th placed team Achyronas Liopetriou played a single relegation playoff match against the 4th placed team of the 2011–12 Cypriot Fourth Division, P.O.
Teams promoted to 2011–12 Cypriot Second Division Teams relegated from 2010–11 Cypriot Second Division Teams promoted from 2010–11 Cypriot Fourth Division Teams relegated to 2011–12 Cypriot Fourth Division Source: Result at CFA