Due to the centralization of provincial government, combining powers which had been split among 3 agencies, namely, Interior, Defense and Foreign Office into only one institute, the Ministry of Interior, the reformed provincial government unit became fields or provincial units of the Ministry of Interior or of the central administration as a whole. Governing of the capital, inner and outer provinces, Meung Phya Mahanakorn and dominions was changed. A new governing system was set up according to a hierarchy from top to bottom as follows:

1. The Circle Administration (Monton Tesapiban) consisted of provinces grouped according to geography and governing convenience. This kind of administration was governed by a Circle Governor selected from highly-qualified people, trusted by the King to work on his behalf.
2. Provincial Administration was governed under administrative regulations which had a provision regarding the establishment of a new administrative system called "Muang" which consisted of districts governed by a governor with two provincial committees: the internal affairs department and the external affairs department which assisted in governing and counselling the king on the appointment and transfer of governors.
3. District Administration was set up under the provincial administrative level and as the last unit of provincial government that served the people under central administration policies. It consisted of subdistricts and was led by the District Department which had District Chief Officers and District Finance and Accounting Officers to take care of district affairs. The District Chief Officer was the head of the department. His appointment was by the command of the Circle governor while other positions such as Assistant District Chief Officer, District Finance and Accounting Officer and clerk could be transferred by the governor. If any area of any district was so large that it was difficult for the District Department to thoroughly look after it and yet its population was not so large as to make it a district, or, in case that within a district there was community far away from the District Department, that area would be divided into minor districts which were still part of the district and under the control of District Office but had more officers to look after them.
4. Subdistrict and Village Administration. Each district was divided into subdistricts, each of which was split into villages, the last and administrative unit and the one closest to the people. This level of administration was aimed at encouraging local people to choose their own representatives to look after their interests and the good order of the community and act as the link between the government and people. That is, they would coordinate with the district, take care of local people on behalf of the government and help collect some taxes for the State.