City were pressing for most of the first half and the opening goal came when a corner was flicked on by captain Vincent Kompany into the body of Micah Richards and on the rebound, Mario Balotelli flicked it up to himself and hammered home a brilliant overhead kick to give the home side the ascendency.
Just after half-time, the home side were flying when Adam Johnson got onto a long ball as Villa defender Stephen Warnock had fallen over and was able to tuck it past Shay Given to the far post from the right side of the penalty area to make it 2-0.
Five minutes later the match was essentially wrapped up as City built plenty of pressure and went further ahead when Adam Johnson sent a dangerous corner into the area for Kompany who glanced a header home for his first City goal in18 months.
Villa hit back in the 65th minute when Warnock found space after a cross to finish emphatically from close range before City completed their 13th win in 15 outings at Eithad Stadium when James Milner produced a brilliant finish from the top of the 'D' with a first time curling shot from Garth Barry's pass.
City are now two points clear of United following their third league win on the trot as Villa suffered their first defeat of the season to drop to eight on the table.