Krachi Nchumuru District Assembly is autonomous with regards to planning, budgeting and implementation of projects. The decentralization process adopted in Ghana in 1992 makes the District Assemblies the pivot of development activities in the country. With the coming into force of the 1992 Forth Republican Constitution of Ghana, the new Local Government System Act, 1993 (Act 462), the National Development Planning Commission Act, 1994 (Act 480), the District Assemblies in Ghana are mandated to function as planning authorities with the ultimate task to ensuring the overall development of the areas under their jurisdiction through the formulation and execution of development plans and programmes and designing strategies aimed at mobilizating and utilizing the local resources both human and materials.

The Krachi Nchumuru District Assembly is therefore the highest political and administrative authority of the District. The political administration is made up of twenty five (25) Assembly Members including the Honourable District Chief Executive and Member of Parliament, seventeen (17) elected members and six (6) government appointees. The Member of Parliament is a non-voting member of the General Assembly. There is only one constituency in the District which is Krachi Nchumuru Constituency. The assembly comprises of Two Area Councils namely: Nchumuru Area Council and Borae Area council located at Chinderi and Borae respectively. The district has 17 electoral areas and 119 unit committees. The General Assembly has both Deliberative and executive functions presided over by the Presiding Member who is elected by at least Two-thirds of the members of the General Assembly from among themselves.  The Assembly works through its Executive Committee with seven members and the District Chief Executive as its chairman. 

The Executive Committee operates through the following sub committees: Budget Committee, Development Planning Sub-committee, Works sub-committee, Finance and Administration sub-committee, Justice and Security Sub-committee, Social Services Sub-committee, Agriculture and Environment Sub-committee, and Women and Children Sub-committee.
The various legal frameworks which guide local government development in Ghana include the Civil Service Law, 1993 (PNDC Law 327), the National Development Planning (System) Law, 1994, (Act 480), the Local Government Law, 1993 (Act 462) and Local Government Service Law, 2003 (Act 565). These enactments place emphasis on the District Assembly in order to reinforce the attainment of total decentralization and participatory development. These enactments also mandate the District Assemblies to function as planning authority with the task to formulate and execute plans, programmes and strategies for the effective mobilisation of resources necessary for the overall development of the district.

According to the National Development Planning (System) Law, 1994 (Act 480), all District Assemblies are to submit District Development Plans to the Regional Co-ordinating Council which will in turn harmonize the plans with national development policies and priorities for consideration and approval by the National Development Planning Commission.

There is therefore a vertical relationship between the National Development Planning Commission at the national level, the Regional Co-ordinating Council at the regional level and District Assembly at the district level.