Balan Bihul Rural Municipality is situated at south-west part of Saptari district, province number two. This Rural Municipality was established 2074 B.S. by combining then Malhaniya, Belhi, Mauwaha, Ramngagar and Routahat Village Development Committees. This local unit is surrounded by Bode Barsain Municipality from east, Siraha district from west, Indian border from south and Surunga Municipality from north. This unit has been categorized into six wards. This local unit is named after two villages Balan and Bihul.

As per the household survey 2075, total population of this Rural Municipality is 21,819 covering 3,976 households. Population of male is 10,796 and female is 11,023. Average family size is 5.49 members per family. This local unit covers total area of 33.04 kilometer square. Most of the land is covered by forest and farming area. Maithali is major language. Farming is major occupation under this area. Paddy, maize, wheat and mustard are major crops that could be cultivated along with different vegetable and fruits. Madhesi are the major communities residing under this local area. Hindu is major religion. Service and foreign employment are other occupations. Local government is giving priority to infrastructure development and agriculture.

Mr. Dayananda Goit is Chairperson and Ms. Rubi Gupta is Vice-chairperson of this Rural Municipality. Number of local representatives of this local unit is 34 and number of employees working under this Rural Municipality is 45. Malhaniya village is center of this local unit.