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Although the community of Killarney is quite small (its population in the 2001 census was just 739) and located right on the shore of Georgian Bay, in the late 1990s the Ontario provincial government expanded the boundaries of the Municipality of Killarney to include many unorganized townships in the Districts of Sudbury, Manitoulin and Parry Sound. The municipality was also transferred from the Manitoulin District to the Sudbury District at that time.
The larger Municipality of Killarney now encompasses virtually all of Killarney Provincial Park and the French River Delta, and in fact extends all the way to Highway 69.