On 7 June 1902 part of Peak Downs Division was excised to create Emerald Division.

On 31 March 1903, Peak Downs Division became the Shire of Peak Downs.In 1927, the shire's offices were located in Capella.

In 2008, the shire's offices were located at 24 Conran Street. The Peak Downs Cemetery was also located in Capella.

On 15 March 2008 Peak Downs Shire was abolished by being amalgamated with Shire of Bauhinia,