Kaghan Development Authority was created by the Provincial Government back in 1996 through an act of the Provincial Assembly by promulgating the Kaghan Development Authority Act, 1996 (Act No. VIII of 1996) . The Authority has been restructured in 2020 through a new Act. According to the KDA Act 2020, the authority is a body corporate, and its affairs are governed by its Board of Authority having eleven members from Govt and private sectors.
Presently, the KDA exercises its jurisdiction over four Union Councils of the Balakot Tehsil of district Mansehra which include: i. UC Ghanool. ii. UC Kiwai iii. UC Mohandri iv. UC Kaghan. The board of Kaghan Development Authority is headed by its elected Chairman from the private members whereas the administrative powers of the authority rest with its Director-General.