In 1934, the Special Session of the Legislative Assembly established the Montana State Board of Planning as an ex-officio part of the State Water Conservation Board. In 1935, the Legislative Assembly established the State Planning Board in its own right. Although it was to be composed of the same members as the State Water Conservation Board, the Planning Board now had its own policies and directives. The Board was charged to use scientific knowledge and foresight to assist in "solving the complex problems of Montana, thereby effecting more immediate stabilization of the agricultural, livestock, mining and other industries of the state and bringing about more efficient, economic and fuller use of the manifold resources of Montana."

The State Water Conservation Board provided funding for the State Planning Board, which could appoint an advisory council of five citizens. However, due to a lack of funding provided by the State Water Conservation Board, the State Planning Board remained effectively inactive from 1941 to 1955. In 1967, the Legislative Assembly abolished the State Planning Board and replaced it with the Department of Planning and Economic Development. In 1970, the Department consisted of five Divisions: Administration, Community Development, Industrial Development, Research, and Information Systems. The Planning and Development Commission, which consisted of seven members appointed by the Governor and included the Governor, governed the Department of Planning and Economic Development. This Department was responsible for promoting the planning and development of the state’s economy.

The 1971 Executive Reorganization transferred this Department to the newly created Department of Intergovernmental Relations as the Planning and Economic Development Division. The Planning and Development Commission was abolished at this time. The Department of Intergovernmental Relations consolidated various units that dealt with local government, federal government, or both. In 1975, the Department was renamed the Department of Community Affairs.

The Economic Opportunity Division was originally established by Chapter 263 of Montana Laws of 1965 and operated within the Office of the Governor as the State Economic Opportunity Office. The Office’s responsibilities included mobilizing resources and coordinating activities at and between the state, local and federal level, providing technical assistance to Community Action Agencies (CAAs), advocating for the poor in Montana, as well as advising the Governor on the issues of poverty in the state. The Policy Advisory Board advised the Office. It was transferred to the newly created Department of Intergovernmental Relations (later named Community Affairs) following the 1971 Executive Reorganization as the Economic Opportunity Division. The Department of Community Affairs was abolished in 1981.