The District Administration Scheme started in 1982 by setting up a District Board and a District Management Committee in each district. Through the scheme, the Government promotes public participation in district affairs and fosters among the people of Hong Kong a sense of belonging and mutual care. The scheme also helps to ensure that the Government is responsive to district needs and problems. Following the 1998 review of the structure and functions of district organisations, District Boards have been renamed as District Councils, to underline their important role in district administration.

The second term of the District Councils started on January 1, 2004. In addition to the 400 elected members, there are 27 ex officio members (i.e. Rural Committee chairmen in the New Territories) and 102 appointed members, making a total of 529 District Council members. Their term of office is for four years from January 2004.

The main function of District Councils is to advise the Government on matters affecting the well-being of the people living and working in the districts as well as on the provision and use of public facilities and services within the districts. The Government also consults these bodies on a wide range of issues. In 2004, the 18 District Councils were consulted on 516 territory-wide issues and 2 696 district issues.

District Councils are provided with funds each year to implement community involvement and minor environmental improvement projects in the districts. In 2004-05, a total allocation of $188 million has been made available for District Councils to implement these projects.

Each District Council operates a meet-the-public scheme, under which residents can meet council members face to face to express their views on any district problems. The scheme also provides District Councils with a direct channel to collect public views on local matters and region-wide issues, which the councils can in turn reflect to the Government.

Each district has a District Management Committee, chaired by the District Officer, comprising the chairman, vice chairman and committee chairmen of the respective council and representatives of departments providing essential services in the district. This committee serves as a forum for inter-departmental consultation on district matters and coordinates public services and facilities to ensure that district needs are met promptly.

Area Committees have also been set up in the 18 districts to encourage public participation in district affairs, help organise community activities and government campaigns, and advise on local issues.

Mutual Aid Committees are building-based resident organisations, established to improve the security, cleanliness and general management of multi-storey buildings. At year-end, there were 70 Area Committees and 3 067 Mutual Aid Committees. They provide an extensive network of communication between the Government and the people at the grassroots level.

Apart from Mutual Aid Committees, the Government also devotes time and effort to helping owners of private multi-storey buildings to form Owners' Corporations to facilitate effective management and timely maintenance of their buildings. At year-end, 7 520 Owners' Corporations covering 14 625 buildings were registered with the Land Registry.

The Home Affairs Department has established four Building Management Resource Centres in Hong Kong, Kowloon and the New Territories to enhance its services in building management. These centres provide information, services and advice to building owners, residents, Owners' Corporations, Mutual Aid Committees and management bodies to assist them in improving the standards of management, safety and maintenance of their buildings. In 2004, the four centres handled 52 093 visitors, 67 096 enquiries and 323 appointments for interviews with professional bodies. There were also 52 seminars, talks, workshops and training courses organised for the public free of charge.

Twenty Public Enquiry Service Centres are attached to the District Offices, providing a wide range of free services to the public. These services include answering general enquiries on government services, distributing government forms and information, administering oaths and declarations, and referring cases under the District Council members' meet-the-public scheme, the Free Legal Advice Scheme and the Rent Officer Scheme. The Public Enquiry Service Centres and the Central Telephone Enquiry Centre served 2.32 million clients in 2004.