In 1954, Maharashtra Government founded Hill Station Municipal Council for the development of city. Which is acting for the development through the people, for the people and by the people. The total area under the jurisdiction of the Municipal council is 157.50 Hectares. As per 2006 election it is divided into 17 wards for the purpose of administration. It is a C class Municipal Council run by elected body of 17 members and 2 nominated members. It is at present the Head Quarter of Panhala Municipal in Kolhapur district and Revenue, Judicial, Police, Panchayat Samiti etc. offices are here for the Management of the Mahal.

Panhala is a historical fort in Kolhapur district. It is also a Hill Station attracting tourists from all over Maharashtra. It is situated 20 kms North-west of Kolhapur which is the Head Quarter of the district. There is an excellent road all the way right into the fort.