Mountain Lakes operates within the Faulkner Act, formally known as the Optional Municipal Charter Law, under the Council-Manager form of municipal government (Plan E), implemented based on the recommendations of a Charter Study Commission as of January 1, 1975. The borough is one of 42 municipalities (of the 565) statewide that use this form of government. The Borough Council is comprised of seven members, who are elected at-large for staggered four-year terms of office on a partisan basis, with either three or four seats coming up for vote as part of the November general election in even-numbered years. The Mayor and Deputy Mayor are chosen by the members of the Council from among its members at a reorganization meeting held each year during the first week in January.