The Overstrand local municipality covers Hangklip/Kleinmond, Greater Hermanus, Stanford and Gansbaai.

Local municipalities are mandated to:

• Pass by-laws - local laws and regulations about any of the functions they are responsible for. By-laws may not go against any national laws.
• Approve budgets and development plans - every year a municipal budget must be passed that sets down how money will be raised and spent. The municipality must also approve the Integrated Development Plan (IDP).
• Impose rates and other taxes, for example property tax.
• Charge service fees for using municipal services like water, electricity, libraries, and so on.
• Impose fines for people who break municipal by-laws, for example traffic fines or littering.
• Borrow money - the council can take a loan for a development or other project and use municipal assets as surety.

Local municipalities are responsible for the following functions:

• electricity delivery
• water for household use
• sewerage and sanitation
• storm water systems
• refuse removal
• fire fighting services
• municipal health services
• decisions around land use
• local roads
• local public transport
• street trading
• abattoirs and fresh food markets
• parks and recreational areas
• libraries and other community facilities
• local tourism.