Bandar Baharu District Council is a Local Authority Party that is given the authority under the governments Act of Law 124 (Temporary Provisions) for its administration area. Bandar Baharu District Council covers the whole Bandar Baharu district. It covers an area as wide as 169.3km square feet and constitutes of seven districts which are Serdang, Kuala Selama, Sungai Batu, Bagan Samak, Permatang Pasir, Sungai Kecil Ilir and Relau. The Bandar Baharu district is located in the southern region of Kedah Darul Aman State, neighbouring the Kulim District in the North, Penang in the West and Perak in the south.

A total of nine settlements have been identified within the Bandar Baharu District Council area as areas which will develop more rapidly compared to other areas; Bandar Baharu, Serdang, Selama, Lubuk Buntar, Bagan Samak, Sungai Kechil Ilir, Relau, Air Putih and Permatang Kerat Telunjuk. The total for all these areas is 2,518.1 hectares.

A total of 300.0 hectares (11.9%) of the settlement area is the current operational area for the Bandar Baharu District Council, gazetted on 1 March 1979 according to the provision of Act 171.