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Inverness was an autonomous royal burgh in the scottish highlands, and county town for the county of Inverness (also known as Inverness-shire) until 1975, when local government counties and burghs were abolished, under the Local Government (Scotland) Act 1973, in favour of two-tier regions and districts and unitary islands council areas. The royal burgh was then absorbed into a new district of Inverness, which was one of eight districts within the Highland region. The new district combined in one area the royal burgh, the Inverness district of the county and the Aird district of the county. The rest of the county was divided between other new districts within the Highland region and the Western Isles. Therefore, although much larger than the royal burgh, the new Inverness district was much smaller than the county.

In 1996, under the Local Government etc (Scotland) Act 1994, the districts were abolished and the region became a unitary council area. The new unitary Highland Council, however, adopted the areas of the former districts as council management areas, and created area committees to represent each. The Inverness committee represents 23 out of the 80 Highland Council wards, with each ward electing one councillor by the first past the post system of election. However, management area and committee area boundaries have been out of alignment since 1999, as a result of changes to ward boundaries. Also, ward boundaries are changing again this year, 2007, and the council management areas are being replaced with three new corporate management areas.

Ward boundary changes in 2007, under the Local Governance (Scotland) Act 2004, create 22 new Highland Council wards, each electing three or four councillors by the single transferable vote system of election, a system designed to produce a form of proportional representation. The total number of councillors remains the same. Also, the Inverness management area is being merged into the new Inverness, Nairn and Badenoch and Strathspey corporate management area, covering nine of the new wards and electing 34 of the 80 councillors. As well as the Inverness area, the new area includes the former Nairn management area and the former Badenoch and Strathspey management area. The corporate area name is also that of a constituency, but boundaries are different.

Within the corporate area there is a city management area covering seven of the nine wards, the Aird and Loch Ness ward, the Culloden and Ardersier ward, the Inverness Central ward, the Inverness Millburn ward, the Inverness Ness-side ward, the Inverness South ward and the Inverness West ward. The Nairn ward and the Badenoch and Strathspey ward complete the corporate area. Wards in the city management area are to be represented on a city committee as well as corporate area committees.

In 2001 city status was granted to the Town of Inverness, and letters patent were taken into the possession of the Highland Council by the convener of the Inverness area committee.These letters patent, which were sealed in March 2001 and are held by Inverness Museum and Art Gallery, create a city of Inverness, but do not refer to anywhere with defined boundaries, except that Town of Inverness may be taken as a reference to the burgh of Inverness. As a local government area the burgh was abolished 26 years earlier, in 1975, and so was the county of Inverness for which the burgh was the county town. Nor do they refer to the former district or to the royal burgh.

The Highland area was created as a two-tier local government region in 1975, and became a unitary local government area in 1996. The region consisted of eight districts, of which one was called Inverness. The districts were all merged into the unitary area. As the new local government authority, the Highland Council then adopted the areas of the districts as council management areas.