The election will be closely watched as a test of the country's democratic credentials ahead of a landmark nationwide poll slated for November next year.
For many the ballot for the Yangon City Development Committee is the first chance to vote under the country's quasi-civilian government, which replaced outright military rule in 2011.
It is also a rare opportunity to have a say over the future of Myanmar's biggest city, where residents grumble about runaway construction and soaring rents, worsening traffic, poor sanitation and weak pollution control.
But curbs on who can vote have enfranchised just 400,000 of the city's several million residents, while other clauses have strictly controlled who can stand for the YCDC.
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Just under 300 candidates, among them businessmen, retired civil servants and activists, are competing for 115 positions on the committee -- although the top posts will remain largely appointed.
Campaigns were muted -- or non-existent -- in a country where politicians are unused to wooing the electorate, although election officials were on hand to help with the queries over ballot sheets available at polling stations across Yangon early today.
"I do not know anything about candidates. I just found out their names while voting," Phone Maw Lynn, a resident in Sanchaung township told AFP after voting.
"I hope for some significant change by voting," he said without revealing who he voted for.
Polling officials said the election -- which ends before dusk -- will be free and fair, in a break from the junta years.