The island is 36.99 km (23 mi; 20 nmi) northeast of the country's capital, Malé.

In accordance with the 2010 Decentralization Act of Maldives, Dhiffushi is governed by an elected Island Council composed of three Councillors.

The Island Council reports to the Local Government Authority (LGA).

As democracy and decentralization are at the infant stage in the Maldives, the councilors, and the government may find it difficult to deal with important issues like land, and resource utilization.

[citation needed] Dhiffushi has a variety of guesthouses run by locals along with a few guest shops opened up for business.