[3][4] The Panadura District Town Council was established by a Gazette dated 13 January 1922.

Previously, there had been a local governance institution called the Sanitary Board.

The newly established Town Council met for the first time in January 1923 at the Panadura Sanitary Board Inspector's office.

Currently, the council governs an area of 5.8 square kilometres (2.2 sq mi) covering 19 Grama Niladhari divisions, with a total population of 35,803, and 24,166 electors.

Low lying wet zone land takes up 8.03% of the total land area, and common crops include rice, rubber, tea, coconut, and fruits and vegetables.