The Local Authorities Act 1902 abolished divisional boards and created city, town and shire councils. Under this Act, Caboolture Divisional Board was abolished and its functions were transferred to Caboolture Shire Council on 31 Mar 1903.
The area originally administered by Caboolture Divisional Board did not exactly correspond with that administered by its successor body, Caboolture Shire Council. The present Pine Shire Council, Redcliffe City Council (1888) and Maroochy Shire Council (1890) had already been established as separate bodies. On 22 February 1912 Landsborough Shire Council and Kilcoy Shire Council also separated from Caboolture Shire Council.
Along with the more traditional functions of local government such as transportation planning, engineering design and assessment, land survey, planning and construction of public works, water resources planning, catchment management, water treatment transport and distribution, parks and recreation regulation, rating services, library services and public finance, Caboolture Shire Council has in recent years increased its functions to include arts and cultural development, community facility planning and development and the development of greening programs.
At the time of its establishment in 1903, Caboolture Shire Council was divided into three geographical divisions for electoral purposes, each of which returned three Councillors. A fourth division was created on 3 April 1911 and a fifth when Bribie Island became a separate division in 1932. By 1996 Caboolture Shire Council was made up of six divisions, each of which elected one Councillor. The mayor is elected by all voters in all divisions.The Council appoints administrative officers under the control of a Chief Executive Officer. Councillors and administrative staff are paid from Council revenue. An annual Statement of Expenditure and Revenue is submitted to the Minister.
On 15 March 2008, Caboolture Shire amalgamated with the Pine Rivers Shire and Redcliffe City to form the Moreton Bay Region.