The Municipal Clerks' Institute was founded in October 1936 by Raymond West, the then Town Clerk of the City of Shepparton, Victoria. In NSW the Town Clerks' Society was the professional association operating alongside the Institute in upholding the status and protection of the interest of those persons entitled, under the law for the time being in force, to occupy the position of Town, Shire or County Clerk.

In 1949 the Institute changed its name to the Institute of Municipal Management (IMM) to reflect the changes in Local Government.

In 1987 the Town Clerks' Society changed its name and formed the Institute of Municipal Management (NSW Division). The Institute, although its past stemmed from a professional body for Municipal Clerks, broadened its base to represent all executives and managers in the Local Government industry.