The "Local Authorities Act 1902" abolished divisional boards and created city, town and shire councils (converting municipalities into towns, and divisions into shires).
Subsequently, Landsborough Shire was formed from part of Caboolture Shire on 22 Feb 1912. It became Caloundra City on 19 Dec 1987.
Under the "Local Authorities Act 1902", the primary function of Councils was to provide such public services and amenities as parks and reserves, cemeteries, libraries and recreational facilities, water and sanitation services, roads, bridges, wharves, street lighting, public health services (such as immunisations), licences and registrations for businesses, markets and animals, town planning, and the control of noxious weeds and other pests.
Councils were also responsible for administering the Local Fund, and for valuing properties within the Shire for the purpose of determining and collecting rates.
Councils could pass by-laws regarding all matters within its jurisdiction. All such by-laws required the assent of the Governor-in-Council.
Shire Councils included a chairman, town clerk and a number of other members. From time to time, Councils could appoint committees for special or general purposes. Councils also appointed its own officers, who were paid from the Local Fund.
Each year the Minister appointed an independent auditor to review the financial statements Councils. Councils submitted an annual Statement of Revenue and Expenditure to the Minister, which was published in the Government Gazette.