Pencoed Town Council is one of 737 Community and Town Councils in Wales which are independent of the Welsh 22 Unitary Authorities. It is a Town Council since it took the decision to have a Mayor of Pencoed but its legal status is the same as a Community Council.

Pencoed Town Council has the power to represent and support its community, and is responsible for establishing policies for action and for deciding how money will be raised and spent on behalf of the community. It is responsible for spending public money lawfully and without risk, and for achieving the best value for money.

The Precept is paid by residents of Pencoed as part of the Council Tax levied by Bridgend County Borough Council. The funds are used for administrative costs, support of the environment and community projects, and the development of assets.

The Town Council is progressive and owns Coed Iestyn Wood which is a community asset and a habitat for various species. It has renewed all the boardwalks and bridges and a stone entrance wall has been constructed.

The Town Council is warded, as follows: Hendre, Felindre, and Penprysg Wards, and comprises of thirteen councillors making up the membership of Pencoed Town Council. The Council employs a full-time Town Clerk, and a full time Community Services Supervisor and 2 Part Time Toilet Attendants.

It has formed a partnership arrangement with Bridgend C. B. C. to develop and deliver the Pencoed Regeneration Strategy which contains a number of projects which the Town Council wishes to progress.

Several important events are organised by the Town Council throughout the year.