Under The "Local Authorities Act 1902" Lowood Shire was established from part of Walloon Shire on 19 January 1912.
Under the "Local Authorities Act 1902", the primary function of Shire 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.
The Council was also responsible for administering the Local Fund, and for valuing properties within the Shire for the purpose of determining and collecting rates.
The Council could pass by-laws regarding all matters within its jurisdiction. All such by-laws required the assent of the Governor-in-Council.
The Shire Council included a chairman, town clerk and a number of other members. From time to time, the Council could appoint committees for special or general purposes. Council 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 of the Council. The Council submitted an annual Statement of Revenue and Expenditure to the Minister, which was published in the Government Gazette.
Lowood Shire was abolished to become part of Esk Shire by gazettal notice dated 13 October 1916 to take effect 1 January 1917, but members of the Lowood Shire Council were to continue in office until completion of the annual election of members of Esk Shire Council for division 1 in 1917.