Dyfed was created by the Local Government Act 1972 on 1 April 1974. It covered the former counties of Cardiganshire, Carmarthenshire, Pembrokeshire and was divided into local government districts as so:
| County 1889-1974 | Districts 1974-1996 |
|---|---|
| Cardiganshire | Ceredigion |
| Carmarthenshire | Carmarthen, Dinefwr, Llanelli |
| Pembrokeshire | Preseli, South Pembroke |
The Lord Lieutenant of Dyfed had previously been the Lord Lieutenant of Pembrokeshire, with the Lord Lieutenant of Cardiganshire and Lord Lieutenant of Carmarthenshire becoming Lieutenants. The Dyfed-Powys Police had been created a number of years earlier.
The Local Government (Wales) Act 1994 broke up Dyfed into three unitary authorities on April 1, 1996: Cardiganshire (which renamed itself Ceredigion as soon as it was able), Carmarthenshire and Pembrokeshire, but retained Dyfed as a preserved county for purposes such as Lieutenancy.