The "Local Authorities Act 1902" abolished divisional boards and created city, town and shire councils. Under this Act, Laidley Divisional Board II (131) was abolished and its functions were transferred to Laidley Town Council and Laidley Shire Council I (133). The municipal areas formerly administered by Laidley Divisional Board I were transferred to Laidley Town Council and the rural areas to Laidley Shire Council I.
Laidley Town Council was abolished on 8 February 1917 when it was absorbed by Laidley Shire Council II.
The primary function of Laidley Town Council was to provide such public services and amenities as parks, cemeteries, water and sanitation, roads, bridges, wharves, street lighting, public health services such as immunisations, licensing and registration of businesses and animals, town planning and the control of noxious weeds and other pests. The Council was empowered to create by-laws with respect to all matters within its jurisdiction. All such by-laws required the assent of the Governor-in-Council.
Laidley Town Council was also responsible for administering the Local Fund and for carrying out valuations on properties in the Town of Laidley for the purpose of collecting rates.
The Town Council included a mayor, a town clerk and a number of other members. In addition, Council appointed its own officers who were paid from the Local Fund. From time to time, the Council appointed committees for special or general purposes.