The western and southern parts of the city are commuter towns for the Fukuoka metropolitan area.

According to the Taiho Code of 701, an attempt by the Yamato Kingdom to exert further control over its territories, Dazaifu was given two principal administrative functions: to supervise the affairs of Tsukushi (present-day Kyushu) and to receive foreign emissaries.

The Korokan featured in contemporary literature, such as the Man'yōshū, as a place of departure for ocean voyages.

Government records indicate that the disastrous Japanese smallpox epidemic that took place from 735 to 737 first took hold in Dazaifu.

The government offices were burned down during the rebellion of Fujiwara no Sumitomo in 941 and with the decline of imperial authority, Dazaifu never regained its earlier prestige.

After the Meiji restoration, the village of Dazaifu was established with the creation of the modern municipalities system on April 1, 1889.

Dazaifu has a mayor-council form of government with a directly elected mayor and a unicameral city council of 18 members.

In terms of national politics, the city is part of the Fukuoka 5th district of the lower house of the Diet of Japan.