The City of Woodbury was established in 1967, when residents approved incorporation and selected the mayor-council form of government.

The City Council consists of the mayor and four council members, who are elected at large and serve four-year, staggered terms. Local elections are held in November of even-numbered years. The City Council legislates for the city and sets administrative policy.

The chief administrative officer is the city administrator, who is appointed by the City Council. The administrator is responsible for the supervision of all city departments and for implementing the policies of the City Council.

The city's administrative offices are housed at the Woodbury City Hall, 8301 Valley Creek Road. City Council meetings are held on the second and fourth Wednesday of each month in the Council Chambers on the second floor of City Hall.