The "Local Authorities Act 1902" abolished divisional boards and created city, town and shire councils. Under this Act, Bauhinia Divisional Board was abolished and its functions were transferred to Bauhinia Shire Council on 31 Mar 1903.
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.
Under the “Local Government Act 1993” and through local laws, Councils: promote economic development; own and manage public infrastructure including roads and public works, sewerage, and water storage and distribution; regulate activities which affect the environment including air, noise and water quality, land use and waste disposal, pests and noxious weeds, and building control; provide community services including recreational and cultural facilities and public health services.
Councils generate revenue from rates, service charges, grants and subsidies from state and federal governments, and loans for major projects.
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.
On 15 March 2008, Bauhinia, Emerald, Peak Downs and Duaringa Shires amalgamated to form the Central Highlands Region.