Part II, which consists of a single section, establishes "a body politic under the Crown by the name of the Australian Capital Territory" Part III establishes the Legislative Assembly as a popularly elected unicameral parliament consisting of at least 17 members, presided over by a Presiding Officer (called the Speaker).

Part IV sets out the powers of the Legislative Assembly to make laws for the "peace, order, and good government" of the Territory with some limited exceptions.

It also provides for the conversion of federal laws, such as ordinances made under the old Administration Act, for the Territory into "enactments" which the Legislative Assembly can alter.

On its creation, the Territory's few residents lost any representation they had in the federal parliament and had no means of electing a government to make laws.

The first elections in the ACT were held on 4 March 1989; and the Australian Capital Territory Legislative Assembly first sat on 11 May that year.