Vedaranyam is administered by a second grade municipality. It was originally declared a third grade municipality on 28 August 2004 and promoted to a second grade municipality on 9 August 2010. The municipality has 21 wards and there is an elected councillor for each of those wards. The municipality has 3 revenue villages namely Vedaranyam, Thoputhurai and Agasthyanpalli. The functions of the municipality are devolved into five departments: General administration, Engineering, Revenue, Public Health and Town planning. All these departments are under the control of a Municipal Commissioner who is the supreme executive head. The legislative powers are vested in a body of 21 members, one each from the 21 wards. The legislative body is headed by an elected Chairperson assisted by a Deputy Chairperson. The town became part of Nagapattinam district since January 1997 when the Nagapattinam district was created as a separate district.