The minor district (King Amphoe) was created on April 30 1994, when five tambon were split off from Mueang Sisaket.1 On October 11 1997 it was upgraded to a full district.2
The district is subdivided into 5 subdistricts (tambon), which are further subdivided into 65 villages (muban). Phayu is a township (thesaban tambon) which covers parts of the tambon Phayu. There are further 5 Tambon administrative organizations (TAO).