The municipality belongs to the Verbandsgemeinde of Bernkastel-Kues, whose seat is in the like-named town.

While Graach's main centre, also called Graach, lies in the Moselle valley, the outlying centre of Schäferei lies above the vineyards at an elevation of some 300 m above sea level.

The municipal council is made up of 12 council members, who were elected by proportional representation at the municipal election held on 7 June 2009, and the honorary mayor as chairman.

One peculiarity is the cluster of ecclesiastical names borne by many of the local winemaking locations, such as Himmelreich (“Kingdom of Heaven”), Domprobst (“Cathedral Provost”) and Abtsberg (“Abbot’s Mountain”), which bear lasting witness to the ecclesiastical princes’ and monasteries’ ancient predilection for Graach's wine slopes.

Over a road used mainly by winegrowers, Graach is linked to Bernkastel-Kues, where the gate through which the road passes into town is called the Graach Gate (Graacher Tor in German).