The Panchayati Raj Training Institute, Mashobra was established as a Government Institute, under the Panchayati Raj Department in the year 1978, by the Government of Himachal Pradesh. The Himachal Pradesh Government by the notification dated 31st July, 1978 took over the Institute under its control and also shifted the campus to a place called Mashobra in District Shimla. Before 1978 it was run as an autonomous body at a place called Salogra in district Solan of Himachal Pradesh.   The Present Office Campus of Himachal Pradesh Panchayati Raj Training Institute Mashobra is located at a place called ‘Craigneno’, 3 Kilometres from the Mashobra Block Office and 18 Kilometres from the General Main Bus Stand of Shimla City. Before the year 1999 the Institute was being run in a rented private building in the main market of Mashobra. After then construction of its own building at Craigneno the Institute was shifted to new building in December, 1999. Now, as per the MoU signed by the department of PR with the Agriculture department this building has been handed over to State Agricultural Management Extension Training Institute (SMATI) and PRTI Mashobra has shifted to new building which is around 1 K.M far away from the old building of the Institute.

The Panchayati Raj Training Institute, Mashobra is also recognised as an Extension Training Centre (E.T.C) under the  Ministry of Rural Development, Govt. of India. Being an E.T.C., it  has been receiving an annual recurring grant and also Non recurring grants under different heads from the Ministry of Rural Development , Govt. of India.