I live in Chumphon and was wondering if there was a Thai government agency that did Translation services in Southern Thailand. I am only aware of the translation services that are offered in Bangkok. Does anyone know if a translation can be done in the south?

No government agency offers translations. Only private companies do.

I doubt there is a translation agency in Chumpon, but look if there is a language school. Most language schoool will do the translation for you. If you can't find one, just contact a translation office in Bangkok. Most are happy to do the work by mail, as long as you pay them upfront.