The Cholas' system of government was monarchical, as in the Sangam age. However, there was little in common between the local chiefdoms of the earlier period and the imperial-like states of Rajaraja Chola and his successors. Aside from the early capital at Thanjavur and the later on at Gangaikonda Cholapuram, Kanchipuram and Madurai were considered to be regional capitals in which occasional courts were held. The king was the supreme leader and a benevolent authoritarian. His administrative role consisted of issuing oral commands to responsible officers when representations were made to him. Due to the lack of a legislature or a legislative system in the modern sense, the fairness of king's orders dependent on his morality and belief in Dharma. The Chola kings built temples and endowed them with great wealth. The temples acted not only as places of worship but also as centres of economic activity, benefiting the community as a whole. Some of the output of villages throughout the kingdom was given to temples that reinvested some of the wealth accumulated as loans to the settlements.[103] The Chola Dynasty was divided into several provinces called mandalams which were further divided into valanadus, which were subdivided into units called kottams or kutrams.[104] According to Kathleen Gough, during the Chola period the Vellalar were the "dominant secular aristocratic caste ... providing the courtiers, most of the army officers, the lower ranks of the kingdom's bureaucracy, and the upper layer of the peasantry".
Before the reign of Rajaraja Chola I huge parts of the Chola territory were ruled by hereditary lords and local princes who were in a loose alliance with the Chola rulers. Thereafter, until the reign of Vikrama Chola in 1133 CE when the Chola power was at its peak, these hereditary lords and local princes virtually vanished from the Chola records and were either replaced or turned into dependent officials. Through these dependent officials the administration was improved and the Chola kings were able to exercise a closer control over the different parts of the empire. There was an expansion of the administrative structure, particularly from the reign of Rajaraja Chola I onwards. The government at this time had a large land revenue department, consisting of several tiers, which was largely concerned with maintaining accounts. The assessment and collection of revenue were undertaken by corporate bodies such as the ur, nadu, sabha, nagaram and sometimes by local chieftains who passed the revenue to the centre. During the reign of Rajaraja Chola I, the state initiated a massive project of land survey and assessment and there was a reorganisation of the empire into units known as valanadus.