The Montana State Highway Commission was created in 1913 by the state Legislative Assembly. The original Commission was composed of three members. In 1917 new legislation altered the organization of the Commission by authorizing the appointment of twelve members according to geographic highway districts. Membership was changed again in 1921 to three members appointed by the Governor and in 1941 to five members, also appointed by the Governor. In 1971 the Commission was renamed the Montana Department of Highways, created by Chapter 7 of the Executive Reorganization Act of 1971 and implemented by executive order of the Governor on December 16, 1971. The Department of Highways took over all but the advisory functions of the State Highway Commission.

By 1972, the Department consisted of seven divisions: the Legal Division, Personnel Division, Centralized Services Division, Engineering Division, Motor Pool Division, Gross Vehicle Weight Division, and the Maintenance Division. Each division was headed by an administrator. The Centralized Services Division, Engineering Division, Motor Pool Division, Gross Vehicle Weight Division, and the Maintenance Division were furthered sub-divided into bureaus, headed by Chiefs. In 1991, the Department of Highways became the Department of Transportation.

The Planning Survey of the Montana State Highway Commission was established in 1936, jointly financed by the state and by the U.S. Bureau of Public Roads. Also known as the Planning Survey Division, it was charged with gathering any and all types of data that would be beneficial for highway planning. The name of the Montana Highway Planning Survey was changed in 1966 to the Planning Section and in 1971, following the statewide reorganization, became the Planning and Research Bureau in the new Department of Highways. In 1975 it became the Planning Bureau in the Engineering Division. By 1981 it again was the Planning and Research Bureau, still in the Engineering Division, but in 1982 the Bureau moved to the Maintenance Division. In 1983 it became the Planning and Statistics Bureau in the newly created Program Development Division, where it remained. On July 1, 1991, the Department of Highways became the Department of Transportation. All records after July 1, 1991, are filed under the Department of Transportation. The Planning and Research/Statistics Bureau had, at various times, a Mapping Section, Rural Planning Section, Special Studies Section, Statistics Section, Traffic Operations Section, Urban Planning Section, Multimodal Planning, Rail Planning Unit (see also Montana Department of Highways Rail Planning Unit records) and Urban Transportation Section.

The majority of these various sections and bureaus have consistently remained functions of the Division, despite name changes. The division oversees planning, surveying, and data and statistics gathering for major projects; multi-modal—such as rail and transit—planning; and urban and rural planning.