The administration of Khammam district is carried out through a number of subsidiary divisions. In the year 1985, following introduction of Mandal system the district has been divided into 46 mandals, in four Revenue Divisions: 1.Khammam 2.Kothagudem 3.Paloncha, and, 4.Bhadrachalam. The administrative set-up of the district is discussed below.

For the purposes of local administration, the Zilla Parishad caters to the needs of the people. Zilla Parishad, Khammam was formed in the year 1959 with 13 Panchayat Samithis. In the year 1986 it was reorganized and expanded with 46 mandal parishads.

The Zilla parishad comprises 46 members elected from geographically demarcated territorial. Chairman, Vice Chairman, the Co-opted members and seven standing committees form the body of the Zilla parishad. The finance committee of the Zilla Parishad takes care of all matters relating to the supervision of the revenue and expenditure of the Zilla Parishad. It prioritises the allocation of budget to various plans and developmental projects. The rural development committee performs functions relating to poverty alleviation, area development programme, employment, housing corporation, thrift and small scale industries, including cottage industries. The various committees also take care of the sectors of agriculture and health and education. They are responsible for seeing to agriculture production, animal husbandry, taking care of the educational activities of the Zilla Parishad, health services, hospitals, water supply, family welfare and other allied matters etc.

There are 772 Gram Panchayats in the Khammam district, covering 46 Mandal Parishads.

Direct elections are held for the post of Sarpanchas and Ward Members. The Inspecting and Supervisory using of the Gram Panchayats is the Collector (PW) headed by District Collector who is assisted by District Panchayat Officer and Divisional Panchayat Officers at Khammam, Kothagudem and Bhadrachalam and 46 Executive Officers (PR&RD) work at Mandal level. There are 22 scheduled mandals, 9 partly scheduled mandals and 15 non-scheduled mandals (1233) Revenue Villages in the District. The Panchayat undertakes a number of activities such as street lighting, sanitation, drinking water, demand collection and balances of taxes.

Khammam is one of the Historical Towns of Andhra Pradesh, having nearly 1000 years of traceable History. It is the head quarters town of the District Khammam. It is a special grade Municipality, with an extent of 18.53 sq. kms. The Municipality was formed in 1942 and upgraded as special grade municipality in the year 2000.

The Department of Information & Public relations strives to provide authentic information on Government plans, programmes, activities and achievements in various fields of development, so as to motivate and involve the public in the developmental activities of the government. The department makes use of different sources of media like the press, publications, films, advertisements, exhibitions, song & drama, radio, television, video and other channels of electronic media etc. The department also provides feed back to the government on the response and reactions of the people to the various programmes implemented. Such feed back helps the government to make necessary changes in its policies and programmes to suit the needs of the people and to fulfil their expectations.

Apart from the above mentioned administrative bodies, a number of other organisations have been formed for the purposes of public welfare in the Khammam district.

The Department of Women and Child Development is one of the major departments in the district, implementing the programs for women and children. The main objective includes social and economic development, health and nutritional status of pregnant and nursing mothers and children. The Public Health & Municipal Engineering Department came into existence as a separate and independent department, to cater to the needs of engineering works in municipalities. There are two Rural Water Supply divisions, one at Khammam and one at Kothagudem in the district. A separate circle at Khammam was formed in 1998 for supervision and execution of fluoride projects. The Andhra Pradesh State Minorities Finance Corporation Limited has been setup under the Companies Act, 1956 in the year 1985. The main objective is to assist the weaker sections of Minorities viz; people belonging to the Muslim community, the Sikhs, followers of Buddhism and Zoroastrianism for their Socio-Economic development through Subsidy and Direct Loans.

Apart from the above mentioned a number of welfare committees have been set up for the assistance, growth and development of the district of Khammam. These include disabled welfare, BC welfare officer, Girijan Corporation, Social Welfare, Telegu Balamahila etc.