Incorporated in 1912, Cedar Bluff has a form of municipal government known as the "Town Manager Plan." All powers of the town are vested in an elected council which enacts local legislation, adopts budgets, determines policies, and appoints the town manager, who executes the laws and administers the government of the town. An elected Major presides over all meetings of the council and is recognized as the head of the town government for all cermonial purposes.

Cedar Bluff has a population of 1,300 and an area of 2.3 square miles. From a total of 190 incorporated towns in Virginia, Cedar Bluff is ranked 56th largest in population.

Cedar Bluff has an active Town Planning Commision. Appointed by the coucil, the Planning Commission is responsible for developing a master plan for the physical development for the town to promote the health, safety, morals, comfort, prosperity, and general welfare of its citizens.