Suggestion to set up a court specially to handle cases related to the Local Authority has been presented by the Johor Bahru Town Council in 1995 following the success which has been achieved by the Magistrate Court (City Hall) Kuala Lumpur and Magistrate Court (Municipal Council) Petaling Jaya. The increase of postponed cases in the Johor Bahru Magistrate as well as increase of summon cases which is registered in court is one of the factors which encourage the establishment of the Magistrate Court (Johor Bahru Town Council).

In 1997, the ‘Yang Amat Arif Presiden Mahkamah Rayuan’ who is authorized as the Malaya Chief Judge has agreed to set up a special court to handle all cases related to Johor Bahru Town Council. In relation to that, the Johor Bahru City Council has purchased a 3-storey shop house building at No. 36, Jalan Garuda 1, Larkin, Johor Bahru to accommodate the City Court.