Through an agreement signed on 5 November 1902, Nizam Nawab Mir Sir Mahbub Ali Khan leased Berar permanently to the British against an annual payment of 25 lakh (2.5 million) rupees.

Lord Curzon decided to merge Berar with the Central Provinces, and this was proclaimed on 17 September 1903.

It was under the administrative authority of the Chief Commissioner for the Central Provinces, but administered separately from the other divisions until 1936.

In 1904, there were twelve municipalities in Berar, including Amraoti, Akola, Ellichpur, Basim, Yeotmal, Khamgaon, Shegaon, Akot, and four more.

The Berar Division included the five districts of Ellichpur (Achalpur), Wun (Wani), Akola, Buldana (Buldhana) and Basim (Washim) in 1905.