With the defeat of the Denikin's armies, the governorate was under special jurisdiction of Donets Gubernatorial Executive Committee, while revival of local economy was conducted by the Ukrainian Industrial Bureau.

On 15 March 1920 new administrative border contours were confirmed by the head of Ukrainian Soviet Labour Army, Iosif Stalin.

Following the retreat of White Guards from the region, Donets Governorate was visited by Leon Trotsky who on 19 November 1920 wrote to Lenin, Situation in Donbas is extremely difficult.

Despite protests from the local gubernatorial administration, in February 1924 a big portion of the region's south including such cities like Taganrog and Shakhty was passed on to the newly created South-Eastern Oblast of the Russian SFSR.

In return, the Ukrainian SSR insignificant territorial gains in area of Sloboda Ukraine near Grayvoron, Putyvl, and Belgorod.