In Peninsular Malaysia, a district is a subdivision of a state. A mukim is a subdivision of a district. The mukim is however of less importance with respect to the administration of land.
In East Malaysia, a district is a subdivision of a division of a state. For example, Tuaran is a district within the West Coast Division of Sabah. A district is usually named after the main town or its administrative capital; for example, the town of Sandakan is the capital of the Sandakan District, as well as the capital of Sandakan Division. In Sarawak, some districts are further divided into sub-districts (daerah kecil; literally "small district") before the mukim level.
An administrative district can be distinguished from a local government area where the former deals with land administration and revenue while the latter deals with the planning and delivery of basic infrastructure to its inhabitants. Administrative district boundaries are usually coextensive with local government area boundaries but may sometimes differ especially in urbanised areas.