The Village of Lakewood is an independent municipality under the statutes of the State of Illinois. Most of the Village lies in Grafton Township. The area east of Meridian Street is in Algonquin Township, and a portion of the Brighton Oaks subdivision and the area near Route 47 and Route 176 intersections are in Dorr Township. 

The Village operates under the President-Trustee form of government. The Village Board is comprised of a President (or mayor) and six Trustees who are elected on a non-partisan, at-large basis for staggered four-year terms. The Village Clerk, Treasurer, Attorney, and Village Manager are appointed by the Board. The Village Board is the community's policy-making body and has created a variety of advisory boards and commissions on which citizens can volunteer to participate. The day-to-day operations of the Village are administered by full-time professional staff.

Agendas are posted at Village Hall and RedTail Golf Club the weekend prior to each Village Board meeting.  Residents are welcome to attend Board meetings, which are held on the second and fourth Tuesdays of each month at 7:00pm.