It was part of the Transvaal panhandle between the Phongolo (Natal) and Swaziland (now Eswatini) until 1994, when it was transferred to KwaZulu-Natal.

The town takes its name from the uPhongolo River, which in turn derives its name from the isiZulu word for a barrel, vat, trough, or cask.

During the Depression years of the 1930s, drastic irrigation systems were started in Pongola for sugar cane farms.

The town thrived as a result of the canal system and a sugar mill that was built.

The municipality is governed by the ANC Council consisting of 22 Councillors and an executive committee and Hon.