The Dharan Water Supply Management Board was established on May 2, 2014 (2071 Baisakh 19 B.S.) by the Government of Nepal in accordance with Section 3 of the Water Supply Management Board Act, 2006 (2063 B.S.). The board was formed to effectively operate and manage the water supply system within the geographical jurisdiction of Dharan Sub-Metropolitan City. The main office of the board is located at Bhagawati Marg, Ward No. 13, Dharan Sub-Metropolitan City, Sunsari District.

Although the board was established in 2014 (2071 B.S.), it has been fully operating and managing the water supply system since March 2019 (2075 Falgun B.S.).