Dunster it was part of Williton Rural District. The district council is responsible for local planning and building control, local roads, council housing, environmental health, markets and fairs, refuse collection and recycling, cemeteries and crematoria, leisure services, parks, and tourism. The larger and most expensive local services such as education, social services, libraries, main roads, public transport, policing and fire services, trading standards, waste disposal and strategic planning are the responsibility of Somerset County Council. As Dunster falls within the Exmoor National Park, some functions normally administered by district or county councils have, since 1997, fallen under the Exmoor National Park
Dunster mentioned in the Domesday Book of 1086. From that time it was the "caput" of the Feudal barony of Dunster. The Castle was remodelled on several occasions by the Luttrell family who were lords of the manor from the 14th to 20th centuries. The benedictine Dunster Priory was established in about 1100. The Priory Church of St George, dovecote and tithe barn are all relics from the Priory. The village became a centre for wool and cloth production and trade, of which the Yarn Market, built by George Luttrell (d.1629), is a relic. There existed formerly a harbour, known as