Administratively it is part of Les Îles-de-la-Madeleine Regional County Municipality, which is the municipal unit responsible for the entire archipelago.

The community and the island derives its name from Cap aux Meules, a headland on the island.

The sheltered port of Cap-aux-Meules is an important fishing harbour, as well as a commercial cargo and ferry port. The ferry company, Coopérative de transport maritime et aérien (CTMA) operates a seasonal ferry service to Souris, Prince Edward Island, as well as a year-round cargo service to Matane and Montreal, Quebec.

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