Dutton returned to South Australia in 1847 and in 1849, became a member of the Adelaide board of city commissioners. He was elected a member of the Legislative Council for East Adelaide in 1851 and sat until 1857, when he was elected to the House of Assembly as member for City of Adelaide (9 March 1857 to 18 March 1860) and then for Light (19 March 1860 to 22 Apr 1862; and 17 November 1862 to 28 September 1865). He was Commissioner of Crown Lands and Immigration in the Hanson government from 30 September 1857 to 2 June 1859, and was premier from 4 to 15 July 1863. He formed his second cabinet on 22 March 1865 and was premier and commissioner of public works until 20 September of the same year, when he became agent-general in London for South Australia. He was a good linguist, able to speak French, German and Portuguese, and had an excellent knowledge of business which enabled him to carry out his duties with success until his death on 25 January 1877.