Rutland Waterworks District is an improvement district operating under the jurisdiction of the Ministry of Community, Aboriginal and Women's Services. As such, the Rutland Waterworks District is an autonomous local government body, the affairs of which are directed by elected trustees. The powers that are executed by the trustees flow from the improvement district's Letters Patent, the applicable sections of the Municipal Act and other applicable statutes. These powers include the ability to enact and enforce its regulations and charges, to assess and collect taxes, to acquire, hold and dispose of lands, to borrow money, and to expropriate lands required to carry out its objects.

Improvement districts are independent public corporations, but they are subject in some respects to supervision by the Ministry of Community, Aboriginal and Women's Services. In particular, all bylaws passed by the trustees must be approved by the Inspector of Municipalities. In addition, each year their audited financial statements and the minutes of its annual general meeting are reviewed by and filed with the Ministry of Community, Aboriginal and Women's Services, who plays a role in providing advice and direction to the improvement districts.