The Municipality of Broken Hill was incorporated on September 22, 1888, just five years after boundary rider Charles Rasp pegged the first mineral lease on the site. At that time, Broken Hill was a rough and ready community of timber and corrugated iron buildings and the need for public health controls was one of the main driving forces behind incorporation. The City was divided into four wards, Burke, Wills, Sturt and King, each returning three aldermen. The ward system has since been abandoned and Councillors are elected to represent the whole of the City.
Following application by Council in 2006, the then Minister for Local Government approved that the number of Councillors for Broken Hill City Council be reduced from the current 12 to 10 councillors at the next local government election for Broken Hill. The Mayor of Broken Hill is popularly elected. The Deputy mayor is elected by the sitting Councillors on an annual basis.
On September 21, 2006, the then Minister for Local Government announced a formal public inquiry into Broken Hill City Council.
Effective January 10, 2007, Broken Hill City Council was proclaimed under Administration with Administrator Mr Ken Boyle commencing in January 2007. The term of Administration ceased on December 5, 2009 when the new Council was elected.