[7] Goddard's first serious foray into electoral politics came in 1982, when he led the successful push for members of the Phoenix City Council to be elected from districts, instead of by a majority of all voters citywide.

The measure is credited with significantly opening up Phoenix city government, and in 1983, Goddard was elected mayor.

[15] In 2002, Goddard decided to enter the race for Attorney General of Arizona to succeed fellow Democrat Janet Napolitano, who was running for governor.

[17][18][19] Goddard's stated focus as attorney general was cybercrime, consumer protection, predatory lending and foreclosures, and deceptive advertising.

[22] A hallmark accomplishment during his tenure was his settlement with Western Union over wire transfers involving human smuggling.

[25] This action was considered significant because Bank of America was still in negotiations with 48 other state attorneys general over the same issue.

[26] Nevada joined Arizona in the lawsuit,[27] and succeeding Attorney General Tom Horne announced that he would continue it.

[28] Goddard's first year as attorney general brought a lawsuit against Second Chance Body Armor, Inc. over alleged defects in the bulletproof vests used by Arizona police officers.

[33] The years 2004–2005 also saw the start of Goddard's investigations into suspected polygamists and government abuse in the neighboring communities of Colorado City, Arizona.

Goddard was unopposed in the Democratic primary, and was challenged by Republican state senator Michele Reagan.