One local administration using the internet, and especially the Google tools, to a great extend is the provincial administrative organization (PAO) of Nakhon Phanom (องค์การบริหารส่วนจังหวัดนครพนม).
The chairman of the PAO (นายก อบจ.) Somchop Nitipoj (สมชอบ นิติพจน์) has his own blog, as well as his deputy (รองนายก อบจ.) Arom Wiangkan (อารมณ์ เวียงด้าน), who blogs for more than a year already. Even more, the schedule of the chairman can be viewed as a public Google calendar, and lots of photos from events organized by the PAO are in various Picasa albums. It also has a Powerpoint presentation with the biography of Somchop.
Though I can get only very few of what is written in these sources due to my limited Thai, I wish other government entities would have a similar open way to communicate with their population.