The Pondicherry Municipality Act has been introduced by the Government w.e.f. 26-1-1974.

The Municipality is a separate entity of self Government institution with constitutional status and the municipality is vested with powers for taxation like property tax, profession tax, Advertisement tax, Entertainment tax etc. All the functions and activities are solely meant for public only. The Municipality has got its own different Bye-Laws on various matters for the regulation of various functions.