It was established in 1983 during the tenure of Chief Minister Chandrashekhar Singh and is responsible for upkeep of facilities and overseeing the city's 53 electoral subdivisions, known as wards.

Municipal Corporation mechanism in India was introduced during British Rule with formation of municipal corporation in Madras (Chennai) in 1688, later followed by municipal corporations in Bombay (Mumbai) and Calcutta (Kolkata) by 1762.

[1] Gaya Municipal Corporation was established in accordance with the Gaya Municipal Corporation Act vide S.O.

1390 dated 18 November 1983[2] to improve the infrastructure of the town as per the needs of local population.

Gaya Municipal Corporation is created for the following functions:[5][6] The following are the Income sources for the Corporation from the Central and State Government.