A municipal corporation is the legal term for a urban local body, including cities, counties, towns, townships, charter townships, villages, and boroughs.

"Municipal Corporation" for a larger urban area with population exceeding fifty thousand and generating annual revenue exceeding rupees two cores for the local administration and which has been declared to be a municipal area under section 3 of the Himachal Pradesh Municipal Corporation Act, 1994 (12 of 1994)

Obligatory Functions of MC Mandi are :

• Supply of drinking water in the MC area.
• Cleaning and removal of filth, rubbish and other obnoxious matters.
• Laying and maintaining Public Streets.
• Provision of public lighting.
• Sewerage and drainage provision in MC area.
• Naming and numbering of streets and premises.
• Planting of trees on roadsides and elsewhere.
• The laying out or maintenance of public parks, gardens or recreation grounds.
• Health and welfare functions.
• Regulation of trade through licensing.
• Provision of municipal markets and slaughter-houses.
• Maintenance of heritage monuments.
• Record keeping and statistics.
• Providing by itself or by an agency means of supply of water for fire-fighting.

Discretionary Functions of MC Mandi are :

• Furtherance of education.
• Establishment and maintenance of libraries, museums, zoological collections.
• Survey of building and lands.
• Providing music and entertainment in public places or public resorts.
• Organization and management of fairs and exhibitions.
• Acquisition of movable and immovable property for purpose mentioned before.
• Construction of rest house, poor house, infirmaries, and children homes, house of deaf and dumb and disabled persons.
• Construction and maintenance of cattle ponds.
• Purchase, construction and maintenance of house for employees.
• Establishment and maintenance of hospitals and dispensaries.
• Provision of swimming pools, bathing place and other institutions for improvement of community health.
• Construction/maintenance of warehouse and garages sheds and cattle biers.
• Provision of housing accommodation for inhabitants.
• Any measures to promote public safety, health sanitation.