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 is headed by an administrator. The Centralized Services Division, Engineering Division, Motor Pool Division, Gross Vehicle Weight Division, and the Maintenance Division are furthered sub-divided into bureaus, headed by Chiefs. In 1991, the Department of Highways became the Department of Transportation. This was primarily a name change. However, there were some structural and administrative changes.

The Centralized Services Division for the Department of Highways operated directly under the Director and provided administrative, print, mail and file, accounting, and technical services for the entire DOH. These general services had been part of the DOH and State Highway Commission since the departments inception. The CSD absolved after 1990, whereupon the functions it provided were dispersed among other Bureaus, including the Accounting Bureau, Administration Division, the Financial Management Bureau, and the Purchasing Bureau. of the Department of Transportation.