Except for Police protection which is the responsibility of Suffolk County we are entitled to the full range of municipal services which Islip provides to its mainland residents. In practice this is not the case, Islip has always minimized its support for Fire Island probably because in Fair Harbor as an example while there are over 400 homes there are very few voters registered to vote in Islip elections.

What has happened is that whenever a purely local need has arisen Islip has allowed Fair Harbor and other communities to establish special taxing districts which may levy property taxes on local property, and use the monies raised for specific local activities. In some cases local residents have an active role in directing these activities, in other cases the districts operations are completely controlled by Islip which then looks to the local community for informal direction and advice. In some cases Islip appoints a deputy commissioner after consulting with the community. The deputy commissioner has a major role in determining spending priorities, for the district but the final authority remains with the commissioner who is appointed by the Islip town board.

Currently Fair Harbor has the following taxing districts: Fire, Garbage, Water, Beach Erosion, Life Guard, Medical and Dock. In addition the following private organizations exist in Fair Harbor; Community Association, Events Committee, Swim Club and Yacht Club.