Khairhani Municipality, located in the Narayani Zone under the Central Development Region, is located about 18 km east of Bharatpur, the headquarters of Chitwan district. Formed as per the decision of the Government of Nepal dated 2071/01/25, this municipality was formed by merging three Village Development Committees of Chitwan district, namely Chainpur, Khairhanir and Kumroj. According to the decision of the Government of Nepal dated 2072/06/01, after Kathar Village Development Committee was also included in this municipality, Khairhani Municipality is the combined form of the former four Village Development Committees. Initially, it came forward with the concept of a small rural market, but after the construction of the East-West Highway, it is undergoing rapid urbanization. Parsa Bazaar can be considered as the main market of this city. This market is also the main trading center of Chainpur, Bhandara, Kathar, Kumroj, Birendranagar, Pithuwa and other nearby settlements. There are various legends regarding how Khairhani Municipality was named. It is said that the word Khayarghari, which was then known as Khayarghari, was corrupted and became Khairhani because the area was filled with abundant Khayar in ancient times. The name Khairhani Village Development Committee was named after the same name, and the municipality was formed by including the Khairhani Village Development Committee, and the name of this municipality was changed to Khairhani Municipality.

This municipality, which is about 190 m above sea level, is divided into north and south by the East-West Highway. This municipality is bordered by Shaktikhor and Siddhi in the north, Birendranagar and Bhandara in the east, Ratnanagar municipalities in the west, and Chitwan National Park in the south. The Budhi Rapti River separates Khairhani as a natural border on the south. Due to the fertile soil regularly washed away by the Rapti River and its tributaries, this area is very suitable for agriculture. On political grounds, this city has been divided into 13 wards to provide administrative services to the local people. In addition, this municipality covers an area of ​​85.57 square km. Out of the three constituencies established in Chitwan district for the House of Representatives, Khairhani Municipality falls in constituency number 1. Similarly, for the Provincial Assembly, this municipality falls in both constituencies out of the two constituencies established in constituency no. 1. Accordingly, Provincial Assembly constituency no. 1(a) includes 7 wards, namely Ward Nos. 3, 6, 7, 8, 9, 10 and 11, while 1(b) includes 6 wards, namely Ward Nos. 1, 2, 4, 5, 12 and 13.