It was established under the Local Government Act 1894, and was abolished in 1974 when its functions were assumed by the new Monmouth District Council.
The responsibilities of the Rural District Council included housing, sanitation, sewerage, water supply, refuse collection, road maintenance, cemeteries, parks, and licensing of public entertainments.
The council's area covered the civil parishes of Caerwent, Caldicot, Devauden, Kilgwrrwg, Llanfihangel nigh Rogiet, Llangwm, Mathern, Portskewett, Rogiet, St. Arvans, Shirenewton, Tintern and Undy.
In the 1950s it decided that the village should be allowed to double its existing size, to reach a population of about 3,000.
Soon afterwards, the government decided to build a new steelworks at Llanwern, and its expansion plans were revised upwards, so that, by the late 1960s, Caldicot had a population of over 7,000.