Iwate Prefecture Yamada has an oceanic climate (Köppen Cfb) characterized by mild summers and cold winters.

With the Meiji period establishment of the modern municipalities system, the town of Yamada was created within Higashihei District on April 1, 1889.

On March 1, 1955, Yamada annexed the neighboring villages of Funakoshi, Orikada, Osawa and Toyomane to reach is present borders.

[6][7] Yamada has a mayor-council form of government with a directly elected mayor and a unicameral town council of 14 members.

Yamada, together with the city of Miyako, town of Iwaizumi and the villages of Fudai and Tanohata, collectively contributes three seats to the Iwate Prefectural legislature.

In terms of national politics, the town is part of Iwate 2nd district of the lower house of the Diet of Japan.