Chaudandigadhi Municipality, located in Udayapur district, one of the 7 Inner Terai districts in Nepal, has a total area of 283.78 sq. km. Geographically, this municipality extends from 26 degrees 41 minutes 26 seconds North latitude to 26 degrees 54 minutes 27 seconds North latitude and from 86 degrees 46 minutes 07 seconds East longitude to 86 degrees 59 minutes 32 seconds East longitude. The municipality is bordered by Belka Municipality in the East, Triyuga Municipality in the West, Khotang and Bhojpur districts in the North, and Saptari district in the South. As most of the land here falls under Inner Terai, there is a dominance of very fertile soil mixed with sand and silt. Tropical and sub-tropical climate is found here, and it is cold in the months of Poush and Magh, while it is hot in the months of Baishakh, Jestha, and Ashad.

The current Chaudandigadhi Municipality was named after the Chaudandi state and the historic fort located in Chaudandi, which was formed when the then Sen dynasty kings divided the state into pieces to distribute among brothers.

When preparing the description of the physical condition, it is mandatory to mention the terrain conditions here. Although Nepal is small in terms of area, it is considered rich in the world in terms of terrain diversity. Especially during the geological process, when the Mahalangur mountain range was formed recently, the Tethys Sea existing between the Tibetan block and the Indian subcontinent ceased to exist due to the collision between them, and the land surface of the entire country was formed by the combination of the High Himalayas, the Middle Mahabharat mountain range, the lower Chure mountain range, and the Terai region which is a part of the vast Ganges plain spread in the southernmost part. It is found that there is a dominance of one or another type of terrain among the objective characteristics of this terrain in the rural municipalities or municipalities of Nepal. The terrain structure plays a crucial role in development and construction. Basic aspects such as slope, aspect, elevation, land cover, and soil texture fall under the terrain description.

The main basis for the development of every area is the natural resources available there. Natural resources include locally available land, forests, vegetation, wildlife, herbs, mines and minerals, rivers, streams, lakes, mountains, waterfalls, watershed areas, wetlands, parks, reserves and protected areas etc. We can become prosperous only if we can make sustainable and judicious use of these natural resources.

Human customs, language, behavior, and lifestyle are intangibly guided by certain traditions. To conduct daily behaviors, people are bound in the form of family and society. Marriage and tradition establish kinship relations, creating families. Birth, death, marriage, food habits, attire, festivals, language, lifestyle, etc., all fall within cultural characteristics. These dimensions of civilization and culture are the main aspects of human identity. Cultural activities help people live a refined life. It makes society organized and dynamic.

According to the National Census 2078 (2021 AD), there are 37,012 or 69 percent Hindu followers residing in the municipality. Similarly, 10,450 or 19.5 percent people follow Kirat religion, 4,143 or 7.7 percent follow Buddhism, and 1,477 or 2.8 percent follow Christianity.

Followers residing here celebrate festivals including Bada Dashain, Tihar, Ram Navami, Maha Shivaratri, Hartalika, Shree Panchami, Shree Krishna Janmashtami, Holi, Chaite Dashain, Saune-Maghe Sankranti, Matatirtha Aunsi, Akshaya Tritiya, Harishayani-Haribodhini Ekadashi, Nag Panchami, Raksha Bandhan (Janai Purnima), Kushe Aunsi, Bala Chaturdashi, Kojagrat Purnima, Shree Swasthani Purnima, New Year, Sorha Shraddha, Ubhauli (Baishakh Purnima) and Udhauli (Mangsire Purnima) Sakela festival, Buddha Jayanti, Bhume (Bhumya) festival, Christmas, and Lhosar.

People of various castes, religious sects, and attire reside in this municipality. All castes and sects have their own religion, culture, and customs. In this municipality, where there is a majority of Chhetri and Rai communities, during festivals, women wear Chhitko Gunyu, Chaubandi Choli, Rato Ghaleki and Yellow Patuka reflecting their culture, while men wear Bhoto and Half-coat, Kachhad below the waist, Topi on the head, and Galbandi. However, in modern times, youths of all castes prefer wearing pants, shirts, t-shirts, saree-blouse, and kurta-salwar.

Every place has its own characteristics. Some places have abundant forest areas. Some places have sufficient water resources, while some places are dry areas. Therefore, one can prosper by commercializing agriculture in arable areas, while local levels with abundant forest areas can be made prosperous through sustainable forest management. Based on available resources and means, the municipality's potential can be highlighted. Of the total area, 29.70 percent is cultivable land here. Prosperity can be achieved here through scientific agricultural systems.

Sustainable forest management refers to caring for and maintaining forests just like crops. Within the municipality area, there are potential areas for the development of traditional and modern agriculture, herbs, tourism, animal husbandry, and small and medium industries under possibilities and opportunities. Also, there is ample opportunity to develop it as a tourist area by constructing parks, gardens, and religious heritage sites in various places of the municipality.

There are abundant possibilities to increase production of food grains as well as other cash crops, vegetables, fruits, spices, herbs, and livestock products on the cultivable land in the municipality. Due to the lack of modern agricultural technology, fertilizers, and tools, as well as their high cost, their usage has decreased, and agricultural production has not increased as required. There are ample possibilities to improve the economic situation by increasing agricultural and livestock production through awareness, skill and commercialization, modernization, technology transfer, and simplifying the availability of necessary technology, fertilizers, credit, and seeds.

Due to the lack of modern agricultural systems in the fertile land here, the cultivable land has not been fully utilized, and on the other hand, the soil fertility is gradually depleting, leading to a decline in production and productivity. If haphazard settlement development can be managed, old traditional irrigation canals repaired to increase soil fertility, and work done according to the concept of sustainable development, this municipality can be developed as a livable place for future generations.

As there is ample potential for dairy production and poultry farming in the rural areas of the municipality, if this business can be expanded and transportation services can be extended to their reach in an accessible manner, milk chilling centers, collection centers/cold stores for agricultural products, meat-related industries, etc., can be developed in various places. Through this, there seems to be ample possibility to increase the overall income of the municipality by creating employment.

If the natural resources and means available in this municipality can be managed and used properly by adopting environment-friendly technology, it seems that the sector can create necessary employment at the local level in many rural areas and bring sustainability to local resource mobilization. Since there are some streams and ponds for commercial fish farming in the municipality area, and if ponds and artificial lakes are constructed in more potential places and fish farming business suitable for the climate of this area is done, employment opportunities will easily increase, and there is a possibility that the fish of the municipality itself will take over the market.

If the community forest user groups of the municipality are organized and institutionalized to promote and market non-timber products such as honey production in addition to herb farming in the forest area, it seems that it will provide further support for the economic progress of that sector.

As unemployment is increasing in the country and there are not enough employment opportunities in the government and non-government sectors, attraction towards foreign employment seems to have increased. If arrangements are made to create employment at the local level by providing skill-based training to the youth of this municipality, there seems to be a possibility of making a significant contribution to the economic development of the municipality.

By operating homestays in necessary places in this municipality, which carries abundant tourism potential, tourists visiting various places in Sindhuli and Udayapur districts can be attracted. In addition to this, various potential measures for the development of Chaudandigadhi Municipality can be mentioned as follows.

Gross Domestic Product (GDP) is a measure that reflects the overall economy of a country. It refers to the sum of the final transaction value of goods and services within a country or place in a certain period. It includes all private and public consumption, government spending, investment, inventory, expenses incurred during construction, and expenses and income from imports and exports. In Nepal, it seems calculated annually. According to Trading Economics, in 2024, Nepal's GDP is around 62 trillion 7 billion, with a per capita income of 1517 (one thousand five hundred seventeen) US dollars.

According to the 2025 report of the United Nations Development Programme (UNDP), Nepal's Human Development Index is 0.622, ranking it 145th out of 193 countries in the world. This index of Nepal is lower than the average of 0.636 for countries with medium human development index. In 1990, this index for Nepal was 0.378.