Acting as a local government and providing public services, the Nauru Island Council (NIC) was elected from the same constituencies as parliament, except that seven of the eight constituencies returned one member, and the constituency of Ubenide returned two members, making nine in all. The council elected a chairman, treasurer, and secretary. It held its sessions in the Domaneab, a Nauruan meetinghouse. Many members of parliament also served as councilors. The Nauru Island Council was dissolved in 1999; all assets and liabilities became vested in the Government of Nauru.
Besides fulfilling the traditional functions of local government, the Nauru Local Government Council manages the Nauru Corporation, the Nauru Pacific Line, and is responsible for overseas investments.