On 31 Mar 1903, under the "Local Authorities Act 1902" all Municipalities became Towns, and the Dalby Municipal Council became the Dalby Town Council.
The primary function of Town Councils under the Act 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.
Town Councils were also responsible for administering the Local Fund and for carrying out valuations on properties 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.
On 15 March 2008, Dalby Town amalgamated with Murilla, Wambo, Tara and Chinchilla Shires and Division 2 of Taroom Shire (Wandoan area) to form the Dalby Region.