The Town of Clifton Forge is organized under the Council-Manager form of government where the Town Council appoints a Manager who acts as the Chief Administrative Officer, supervising and directing the day-to-day operations. As head of the Town, the Town Manager has the authority to appoint and remove town employees, excepting elected municipal officers, the Town Attorney and Clerk of the Council, both of which are appointed by the Town Council.

The Town Council sets policy and serves as the Legislative, law-making body responsible for adopting ordinances and resolutions, approving annual operating and capital budgets, establishing tax rates and user fees, and appointing citizen members of boards, committees, and commissions. The five Town Council members are elected at-large and serve overlapping four year terms. A Mayor and Vice Mayor are selected by the Council out of its membership.

Regular Council meetings are scheduled for the second and fourth Tuesday of each month at the Clifton Forge Library or Fire Hall. Special meetings are called as necessary and regular meeting notices and agendas are published in the Virginia Review Newspaper.