Functioning as a service area of the Municipality, its patrol area includes the core "Anchorage bowl", the Seward Highway corridor from Potter Creek south to McHugh Creek, and the Glenn Highway corridor north of the Anchorage bowl to the municipality's border with the Matanuska-Susitna Borough, including the communities of Eagle River, Chugiak and Eklutna.

Through a memorandum of understanding, APD also handles calls on Joint Base Elmendorf-Richardson which involve civilian suspects or victims.

On December 22, 1920, the city council appointed John J. Sturgus to begin as Chief of Police on January 1, 1921, at a salary of $200 a month.

The department got along on foot with the occasional use of a citizen's borrowed car and the use of taxis until the city decided to purchase a vehicle.

It wasn't until April 1941 that the council voted to purchase the department's first new police car—a 1941 Dodge 4-door sedan, completely equipped with siren and spotlight, for $1,401.80.

Though APD contracted police services to the Borough, "Spenard officers" had to use separate ordinances and accounting systems in their duties.

The main exceptions are the Turnagain Arm communities of (from north to south) Rainbow, Indian, Bird, Girdwood, and portage.

Due to the unique nature of Alaska, with massive tracts of federal lands and its proximity to foreign nations like Russia which shares a nautical border, APD also works closely with various federal law enforcement agencies, such as the FBI, US Customs and Border Protection and US Secret Service.

The department's current chief is an alumnus of West Anchorage High School, the University of Alaska[clarification needed] and the U.S. Marines.

APD officers are allowed to qualify and carry personally purchased firearms to include 1911's, Sigs, Springfield XDm and S&W M&P.