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 prosperity of Dunster was based on the wool trade, with profits helping to pay for the construction of the tower of the Priory Church of St George and provide other amenities. The 15th century Gallox Bridge was one of the main routes over the River Avill on the southern outskirts. The market was held in "The Shambles" however these shops were demolished in 1825 and now only the Yarn Market remains. Dunster Beach, which includes the mouth of the River Avill, is located half a mile from the village, and used to have a significant harbour, known as Dunster Haven,