Following a local government review, two new electoral wards will be created to represent the town.
With the creation of the two new wards, the number of district councillors representing the town will increase from three to five.
The changes were announced at a Whitehill Town Council meeting and the creation of the two electoral wards was welcomed by councillors.
Town mayor Neil Ockenden said: "This is hugely welcomed. It's been long awaited."
From 2003, the town's district councillors will represent the five wards of Chase, Deadwater, Hogmoor, Pinewood and Walldown.
The number of Whitehill councillors will increase from 12 to 15.
Lindford will become a separate district council ward and together the Whitehill and Lindford wards will represent the second largest settlement in East Hampshire.
Other areas in East Hampshire have also seen electoral ward changes.
Traditionally, the Hangers ward comprised Greatham, Hawkley, Colemore and Priors Dean.
In 2003, the district ward will be renamed The Hangers and Forest and comprise of Greatham, Liss Forest and Hawkley.