Ron's popularity had nothing to do with his ability to govern, but was instead a product of his well-known catchphrases. While Anchorhead is a small settlement on a desolate planet, it is an important trading hub, and is the home of a fair amount of Tatooine's wealth. A small group of wealthy families had controlled the city for centuries, but Ron tapped into a populist movement by telling the downtrodden to "Stay classy." Despite his total lack of education, Ron's confidence and well-fitted suits made him appear successful, without being perceived as an elitist. His opponents attacked his ignorance, claiming that he was just reading the words and didn't even know what they meant, but he easily won the election and remained mayor for several decades before being killed in a street fight.
Ron had a dog whom he believed could communicate with him. He had bought the dog in a small shop in Anchorhead. After being led to believe that the dog had pooped in his refrigerator- despite no evidence- he had the pet store shut down.
In time, Ron's ultimate dream was realized and he was elected Governor of Tatooine. Though the capital of the planet was Bestine City, he remained in Anchorhead. He was, afterall, the Anchorman, not the Bestineman.