Murray entered the 1989 Winnipeg municipal election as a city councillor candidate of the
Winnipeg into the '90s alliance. He was elected a city councillor at Fort Rouge ward in 1989 then re-elected twice. In the 1995 election, he defeated Terrence Halligan. He lobbied the provincial government to create a municipal property tax credit program for heritage buildings, a program which was approved with all-party support at the Manitoba legislature. In 1998, Murray left his councillor position to campaign as a Winnipeg mayoral candidate. He was elected mayor on October 28, 1998, with 50.5% of the vote in a close race against grocer
Peter Kaufmann, who received 45% of the vote. Murray was re-elected in 2002 over former councillor Al Golden. Significant Winnipeg events during Murray's term included the
1999 Pan American Games and the C5 Summit, a joint initiative of urbanist
Jane Jacobs and Allan Broadbent which gathered the mayors of five major Canadian cities. The summit led to proposals that cities receive new and improved revenue streams, particularly from federal and provincial governments. The effort to achieve this "New Deal" for cities was unsuccessful. This was a way to raise awareness surrounding Aboriginal people who live in the urban city of Winnipeg and create accessibility to civic services. This policy framework represents the civic government's commitment to establish a progressive and constructive relationship with the Aboriginal community. Cultural, demographic, and socio-economic challenges have been addressed as a way to foster effective urban planning and ensure the wellbeing of the Aboriginal people. Murray championed the establishment of the Thunderbird House in Winnipeg which serves as a place of healing and cultural preservation. As a token of appreciation Murray was given an Eagle Feather by First Nations Leaders. The Eagle Feather stands as the highest honour with great cultural and spiritual significance. In 2003, Murray participated in the days of caring by the United Way in Winnipeg by funding a project to build an indoor playhouse. Murray provoked a revitalization plan to help create more affordable housing for low and moderate income citizens. The project was part of a bigger picture concept of helping to create a vibrant, safe, and healthy inner-city neighbourhoods. This was a joint venture between public and private financing. Due to Murray's efforts in preserving Winnipeg's historical downtown and his encouragement of high standards and creativity in design, Murray was made an honorary member of the Royal Architectural Institute of Canada in 2002. Murray worked closely with Moe Levy and
Gail Asper to lead the city government to provide the first public funds and land for the New
Canadian Museum for Human Rights. This project was dedicated to chronicling Canada's human rights journey and the global evolution of human rights in order to inspire visitors and take personal action in the preservation of Human Rights in Canada and around the world. In 2004, Murray worked with Mark Chipman to lead the establishment and construction of the new
MTS Centre in Winnipeg. Once the Eaton's site closed down in the downtown core of Winnipeg, this opened up the opportunity of situating an indoor arena to create a home for the Winnipeg Jets. pedestrian bridge in
Winnipeg In 2003, Murray spearheaded the creation of the
Esplanade Riel pedestrian bridge across the Red River in Winnipeg. This bridge has been recognized as a landmark structure as it connects
Downtown Winnipeg with
St. Boniface. It is the only pedestrian bridge with a restaurant on it in North America. Murray was an advocate of the proposal to create
Red River College's Princess Street Campus. The idea was to renovate an existing building on Princess Street as these buildings contained significant heritage value. This campus was selected to represent Canada at the Third International Green Building Challenge—Sustainable Buildings 2002, an internationally renowned forum that highlights environmentally friendly alternatives used in the design, building and retrofitting of new construction projects from throughout the world. Murray was awarded the Queen's Golden Jubilee Medal in 2002 and the Queen's Diamond Jubilee Medal for his outstanding contributions of citizenship and public service. Murray was succeeded by
Sam Katz, who won the mayoralty vote over councillor
Dan Vandal by a margin of around 43,000 votes. On June 22, 2022, Murray announced his candidacy for the position of
Mayor of Winnipeg in the election in the October 26,
2022 Winnipeg municipal election. He narrowly lost the election to Scott Gillingham. ==Early attempt at federal office==