The municipality of Kiama was created on 13 August 1859 by proclamation in the New South Wales Government Gazette by the Governor of New South Wales
Sir William Thomas Denison. There were three wards: Kiama, Gerringong and Jamberoo. The first council comprised James Colley, John Sharpe and Joseph Pike (representing the Kiama Ward); John Hukins, John Colley and John Hanrahan (representing the Jamberoo Ward); and Joseph Blow, Robert Miller and James Robinson (representing the Gerringong Ward). The first mayor of Kiama was James Colley. In 1871, Gerringong separated from the Kiama municipality and Jamberoo in 1892. In 1954, the Gerringong, Jamberoo and Kiama municipalities were amalgamated forming today's current municipal boundaries. Kiama has had three female mayors: Ruth Devenney (1991 until 1992), Joyce Wheatley (1992 until 2000) and Sandra McCarthy (2000 until 2012). A
2015 review of local government boundaries recommended that the Municipality of Kiama merge with the
City of Shoalhaven to form a new council with an area of and support a population of approximately . The Kiama community along with the Shoalhaven community actively campaigned against any forced council amalgamation between the two councils. Kiama council held a non-compulsory poll on 7 May 2016 to grasp community attitudes to the proposal. The results of the poll concluded that 95% of the community supported remaining an independent council, with a 49.9% turnout. On 12 May 2016, the NSW State Government determined not to amalgamate Kiama and Shoalhaven council areas. == Demographics==