According to the 2002 census of the National Statistics Institute, Paillaco spans an area of 896 km2 (346 sq mi) and has 19,237 inhabitants (9,620 men and 9,617 women).

[2] As a commune, Paillaco is a third-level administrative division of Chile administered by a municipal council, headed by an alcalde who is directly elected every four years.

The council has the following members:[1] Within the electoral divisions of Chile, Paillaco is represented in the Chamber of Deputies by Enrique Jaramillo (PDC) and Gastón Von Mühlenbrock (UDI) as part of the 54th electoral district, together with Panguipulli, Los Lagos, Futrono, Lago Ranco, Río Bueno and La Unión.

The commune is represented in the Senate during the 2014–2022 period by Alfonso de Urresti (PS) and Ena von Baer (UDI) as part of the 16th senatorial constituency (Los Ríos Region).

Previously the area had a German school, Deutsche Schule Paillaco.