The municipality comprises the city of Diksmuide proper and the former communes of Beerst, Esen, Kaaskerke, Keiem, Lampernisse, Leke, Nieuwkapelle, Oostkerke, Oudekapelle, Pervijze, Sint-Jacobs-Kapelle, Stuivekenskerke, Vladslo and Woumen.

The major economic activity of the region is dairy farming, producing the famous butter of Diksmuide.

At the outset of World War I, German troops crossed the Belgian border near Arlon, then proceeded hurriedly towards the North Sea to secure the French ports of Calais and Dunkirk.

Thanks to the water the Belgians were able to stop the Germans; at the end of October, they opened the floodgates holding back the River Yser and flooded the area.

Despite the heavy Belgian losses, the press, politicians, literary figures and the military itself created propaganda which formed public opinion into making the action appear strategic and heroic.