Panauti is one of the oldest city of Nepal founded by Ananda Dev Malla during the medevial period of Nepal (1274-1310 CE). However the documentation in the golden scripture dated 1385 in the Indreswor temple states King Hari Singh Dev founded the city. It is a typical Newari town with beautiful temples; located 32 km southeast of Kathamandu, the capital city of Nepal. Panauti is historical, religious, cultural, and archaeological important city with possibility of tourism. It is believed that Panauti city stands in the single rock which made this city unaffected by the major devastating earthquakes of 1943 and 25 April 2015.

Panauti municipality was established on 24th January,1997 with merging of Panauti, Malpi, Sunthan,Taukhal, Subbagaon, and Khopasi Village development committee. The Panauti city is located at ward 5, 6 and 7. During the 1990s, a program of corporation of French Food, funded and enabled the complete renovation of a number of religious monuments and historical buildings within Panauti.

Panauti is located in Kavre district; Bagmati zone in central region of Nepal. It is located at 70̊ 33′- 27̊ 37′ latitude N; 50̊ 29′ -85̊ 33′ longitude E. It is situated 1340-1825 m above the sea level. It occupies an area of 33.78 square kilometers. The cultivable land occupies 47.52%, forest 41.58% and 8.54% by settlement. The maximum recorded temperature is 32 degree Celsius and minimum temperature is 0 degree Celsius with temperate climate. The average rainfall is 1200 mm in a year.

The total population of the municipality is 28312 (Female: 51.37% and Male: 48.63%) with population growth rate 2.07%. The Kshhetriya, Newars, Bramhin, Tamang, Mijar are the major ethnicity; the Newars predominates the Panauti city. The literacy rate is 82.86% (92.14% male and 73.66% female) with child education of 99.08%.

Panauti can be reached via various transportation modes from Kathmandu through Araniko Highway. It is 6 Km south of Banepa. Buses are available from old buspark near Ratna Park in Kathamandu which leave at 5 minutes interval.