The area that was covered under administration extended to Lake George in the north, the Tallaganda State Forest in the south, Queanbeyan to the west and the Morton and Budawang National Parks to the east.

Predominantly rural in nature, the Palerang Council area comprised the towns of Bungendore, Braidwood and Captains Flat, and the villages of Araluen, Majors Creek, Mongarlowe and Nerriga.

It also encompasses the rural residential areas of Wamboin, Bywong, Burra, Urila, Hoskinstown, Rossi and parts of Carwoola, Royalla, and Sutton.

Around two-thirds of the Palerang population was concentrated in Bungendore and the rural residential areas adjacent to the Australian Capital Territory border, with many residents commuting daily to Canberra or Queanbeyan.

Cattle grazing is the primary agricultural pursuit in the former area, with more recent development of niche rural industries such as vineyards, olive groves and alpaca breeding.