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
Yarn Market, Dunster on the motte by the start of the 12th century, and the castle survived a siege during the early years of the Anarchy. At the end of the 14th century the de Mohuns sold the castle to the Luttrell family. Dunster had become a centre for woollen and clothing production by the 13th century, with the market dating back to at least 1222, and a particular kind of kersey or broadcloth became known as 'Dunsters'. The prosperity of Dunster was based on the wool trade, with profits helping to pay for the construction of the tower of the Priory Church