The District Administration Scheme started in 1982 with the establishment of a District Board and a District Management Committee in each district. Through the scheme, the Government promotes public participation in district affairs and fosters a sense of belonging and mutual care among the people of Hong Kong. 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 were renamed 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. The term of office of these council members is four years starting 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 2005, the 18 District Councils were consulted on 605 territory-wide issues and 2 748 district issues.

Funds to help District Councils implement minor environmental improvement and community involvement projects have been increased from $130 million in 1999-2000 to $173.5 million in 2005-06.

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 has been well received by the public. It also provides District Councils a direct channel to collect public views on local matters and region-wide issues. Each district has a District Management Committee, chaired by the District Officer, comprising the chairman, vice-chairman and committee chairmen of the District 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 the provision of 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 3 039 Mutual Aid Committees. They provide an extensive network of communication between the Government and people at 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, 7 807 Owners' Corporations 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 2005, the four centres handled a total of 75 645 visitors, 87 488 enquiries and 381 appointments for interviews with members of professional bodies.

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 a total of 2.09 million clients in 2005.