Drayton Shire Council was established on 20 August 1887 from a part of the Gowrie Division. In 1917 part of the former Middle Ridge Shire was added to Drayton Shire Council.
Under the " The Local Authorities Act of 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.
Drayton Shire Council was abolished on 19 March 1949 and parts included in Toowoomba City Council, Cambooya, Gatton and Jondaryan Shire Councils.