Located on the Prithvi Highway in the lap of Machhapuchhre Himal on both sides of the sacred Shuklagandaki, in the protection of high areas such as Bhujikot, Dagam and Gurdum, Thaprek, Raipur, Lamagaun, this municipality was announced as per the decision of the Council of Ministers on 25th Baisakh 2071, incorporating the former Dulegaudha, Khairenitar and Dhorfirdi VDCs and the office was established and operational from 7th Jestha 2071. According to the decision of 22nd Falgun 2073, three additional VDCs, Thaprek, Raipur and Phirfire, have been operational as Greater Shuklagandaki Municipality from 30th Falgun 2073.

This municipality is located 170 km west of the country's capital Kathmandu and 19 km south of the tourist city Pokhara. In the ancient language, Setigandaki is called Shuklagandaki, which means clean, bright and emerging. The municipality is named Shuklagandaki because the Seti Gandaki River flows through the central part of this municipality.