The Perm Krai was formed as a result of the merger of the Perm Oblast and the Komi-Permyak Autonomous Okrug. This significant administrative shift took place after a series of discussions and considerations among regional leaders and the federal government of Russia. The intention behind the merger was not only to consolidate resources but also to improve the management of the region, ensuring more coherent and effective governance. In the context of the Russian Federation, the creation of new federal subjects has often aimed to enhance local governance and tailor administrative structures to better fit regional needs.

The decision to merge these two regions came about as part of a broader strategy to optimize the state apparatus in the Russian Federation. In the early 2000s, the Russian government was actively restructuring various administrative divisions to better align with economic and social realities. The Perm Krai, which features a diverse geography ranging from the Ural Mountains to forested areas, contains mineral resources that have historically been crucial to the regional economy. By merging the two entities, the government sought to unify the economic potential and administrative capabilities of the area.

Following the merger, the Perm Krai's administrative center was established in Perm, the largest city in the region. This city became the focal point for planning and development strategies aimed at boosting local economic growth while respecting the unique cultures of the Komi-Permyak people. The new administrative framework allowed for a more coordinated approach to addressing local issues, such as infrastructure development, healthcare, and education, benefiting residents across the newly formed region.