Local government in the Bahamas exists in two forms, namely second-schedule and third-schedule district councils. There are a total of 32 local government districts: 13 second-schedule districts, which are further sub-divided into town areas, and 19 third-schedule districts, which are all unitary authorities. The second and third schedules together make up the first schedule. Local government policy is formulated and administered by the Department of Lands and Local Government through the Office of the Prime Minister. The day-to-day policy handling of the portfolio falls to the Minister of Local Government who also is empowered to create new local government areas from time to time based on demographics. The administrative and financial management is overseen by the ministry’s permanent secretary.
Local government previously existed in the Bahamas in the form of appointed "Board of Works". Here towns and villages held their influence over these Board of Works, but almost all final decisions were made by the central government through that islands' Commissioner. The modern system of local government that is in use today was implemented on 8 March 1996. The Out Islands of the country could now enjoy a somewhat greater degree of autonomy, but New Providence Island, in which the capital city Nassau is located, was to be directly governed by the central government. The act that implemented local government had described all districts as either being Second-Schedule or Third-Schedule districts.
The Districts of the Bahamas provide a system of Local Government everywhere in The Bahamas except New Providence (where Nassau the capital is located, whose affairs are handled directly by the central government). The current system dates from 1996 when 23 districts were "created" by The Bahamas Local Government Act of 1996– a further 9 have been added since 1999.