The administration of Alava is based on a system of special laws. These are historic rights which have survived from the early 14th century when Alava became a part of the kingdom of Castile by agreement with the Crown.

In return, the people of Alava enjoyed certain exemptions from Royal taxes and the obligation to serve in its armies of the Crown, except in defence of their own land. The governing institutions - Brotherhoods, General and Individual Assemblies, "Cuadrillas" and Councils - were granted a series of dispensations and authorities.

The Fueros, or Special Laws, evolved in accordance with the developments in social and economic affairs up until the 19th century, when the tendency for centralisation became widespread in Europe. In this way the autonomous laws marked the beginning of a period of change which has been reduced, in practice, to a system of economic agreements.

The establishment of political self-rule in the Autonomous Community of the Basque Country of today, through the Gernika Statute of Autonomy, has made it possible for autonomous institutions to recover the use of their powers. Moreover, the Historic Territories Act provides a specific description of the Basque Country specifying the limits of its autonomous powers.

Alava is represented in the Basque Parliament (Eusko Legebitzarra) on an equal footing with Gipuzkoa and Bizkaia. This Basque Parliament legislates the overall actions for the Autonomous Community of the Basque Country, whilst respecting the autonomy of each province's institutions, i.e. Provincial Council and General Assemblies.