Chanco is bordered on the north by Constitución and Empedrado (both in Talca Province); on the south by Pelluhue; on the east by Cauquenes, and on the west by the Pacific Ocean.

The forest would be declared a national reserve in 1979 and today it constitutes a frequented touristic attraction in the province of Cauquenes.

As a commune, Chanco is a third-level administrative division of Chile administered by a municipal council, headed by an alcalde who is directly elected every four years.

The 2008-2012 alcalde is Viviana Díaz Mesa (RN).The municipal council has the following members:[1][2] Within the electoral divisions of Chile, Chanco is represented in the Chamber of Deputies by Guillermo Ceroni (PPD) and Ignacio Urrutia (UDI) as part of the 40th electoral district, together with Longaví, Retiro, Parral, Cauquenes and Pelluhue.

The commune is represented in the Senate by Hernán Larraín (UDI) and Ximena Rincón González (PDC) as part of the 11th senatorial constituency (Maule-South).