The enormous Theewaterskloof Dam, which provides water for Cape Town and the surrounding areas, is located in the municipality.

The municipality covers an area of 3,232 square kilometres (1,248 sq mi) in the western interior of the Overberg region.

The coloured residents of Pineview (Grabouw), Bergsig (Caledon), Myddleton, Heuwelkruin (Greyton), and Riviersonderend were governed by management committees subordinate to the white councils.

The former mission station of Genadendal was governed by a management board, and the remaining rural areas fell under the Overberg Regional Services Council.

Transitional local councils (TLCs) were established in each town or village as a result of this process.

These transitional councils were initially made up of members nominated during the negotiations, some of whom had been councillors of the previous local authorities, while others represented political parties and community organisations.

Fourteen councillors are elected by first-past-the-post voting in fourteen wards, while the remaining thirteen are chosen from party lists so that the total number of party representatives is proportional to the number of votes received.

In the election of 1 November 2021 the Democratic Alliance (DA) won a plurality of eleven seats on the council.

The African National Congress (ANC) then formed a minority coalition government with the Patriotic Alliance which is supported by Good.