The then Mankamana, Pangma and Malta Village Development Committees were merged into B.S. Khandwari municipality was established on January 18, 2053. After that, in the context of state restructuring, in 2073, Gavi Khandwari municipality was also established in this municipality, along with Sitalpati borough of Savik. There are currently 11 wards in Khandwari Municipality. This municipality is also the district headquarters of Sankhuwasabha district. Khandwari municipality is located in the south west region of the district and is connected with Shadanand municipality of Bhojpur district. To the east of Khandwari Municipality are Sabhapokhari Rural Municipality, Panchkhappan Municipality and Chainpur Municipality, while to the west it is connected with Shadanand Municipality and Silpasilichho Rural Municipality of Bhojpur District. Similarly, Chichila rural municipality and Silichod rural municipality are located on the north side, while it is connected with Chainpur municipality and Maujpur district on the south side. Basically, Khandwari municipality is surrounded by the Arun river on both the west and south sides. Municipality for Sankhuwasabha district is among the small municipalities. Only about 3.54 percent of the total area of the district is occupied by this shift.

In terms of parliamentary constituencies, Sankhuwasabha district has only one constituency, this municipality also falls in the same region and 2 constituencies have been determined for provincial assembly elections, this municipality belongs to constituency 1.