Yuzawa claims to be the birthplace of the famous Heian period poet Ono no Komachi.

The area of present-day Yuzawa was part of ancient Ugo Province, dominated by the Satake clan during the Edo period, who ruled Kubota Domain under the Tokugawa shogunate.

Yuzawa has a mayor-council form of government with a directly elected mayor and a unicameral city legislature of 18 members.

The city (together with the towns and villages of Ogachi District) contributes three members to the Akita Prefectural Assembly.

In terms of national politics, the city is part of Akita District 3 of the lower house of the Diet of Japan.

The economy of Yuzawa is based on agriculture, primarily rice cultivation, and the brewing of sake.