The governing body of Lothal existed within the Lothal sector of the Outer Rim Territories. This political structure was present before the rise of the Galactic Empire, continued through its reign, and persisted into the era of the New Republic. The world of Lothal served as its capital, and it featured a senate that convened at the Lothal City Capitol Building.
During the Clone Wars, the government on Lothal functioned as a component of the Galactic Republic. Following widespread destruction of livestock and crops on Lothal due to droughts and plagues, the government formally requested assistance from the Galactic Senate. The Senate, however, prioritized the war effort and subsequently denied Lothal's appeal, resulting in no aid from the central authority.
Following the Galactic Empire's establishment, which supplanted the Republic, the Lothal government, now integrated into the Empire, once again sought aid. The Empire showed interest in Lothal, viewing it as a potentially valuable outpost location. Consequently, an Imperial survey team was sent to the planet and, at first, found nothing of significance other than extensive crops. However, further investigation revealed substantial starship-building resources beneath the planet's surface. Within a week of this discovery, mining operations and droid manufacturing facilities were deployed, along with an Imperial garrison. The planetary government then attempted to protect its sovereignty.
In the years following the Galactic Civil War, the government of Lothal became a formal signatory to the New Republic.