The changes will see Municipal Affairs become its own department that will also include the Emergency Management Office and the Office of the Fire Marshal.
Mark Furey remains municipal affairs minister and is still responsible for Service Nova Scotia, which oversees the issuing of licences and permits, vital statistics, as well as land and property records.
The government is also planning to appoint a chief executive officer to run Service Nova Scotia.
A new Internal Services Department is being set up to deal with government purchasing, transactions and operational accounting, among other things.
Labi Kousoulis will be the minister responsible for the department and the Public Service Commission.
The changes take effect April 1.