Chandranagar Rural Municipality is situated at mid part of Sarlahi district, Province number two. This Rural Municipality was established in 2074 B.S. by combining then Chandranagar, Mohanpur, Babarganj and Kisanpur Village Development Committees. This local level unit is surrounded by Ishwarpur and Haripur Municipalities from north, Ishwarpur Municipality from east, Kabilasi Rural Municipality from west and Brahmapuri Rural Municipality from south. This local unit is divided into seven wards. This place was given Birta by Chandra Shamsher Rana, Late Prime Minister of Nepal so its name is Chandranagar.

As per the census 2011, total population of this Rural Municipality is 36,031 with 5,850 households. Population of male is 16,455 and female is 15,810. Ward number one is most populated ward. This local unit covers total area of 47.5 kilometer square. Literacy rate is 53.2%. Maithali is major language as 81.1% people speak it followed by Tharu and Nepali. Hinduism is major religion. There are 33 different ethnic groups residing under this Rural Municipality among them Kushwaha, Mushlim, Teli and Yadav are some high populated ethnic groups. Most of the people are involved in farming followed by labor, foreign employment and service. Fishery and animal husbandry are complementary occupations of agriculture. 59% of people are economically active.

Mr. Mahendra Mahato Sudi is Chairperson and Ms. Bina Devi Shah is Vice-chairperson of this Rural Municipality. Chandranagar bazaar is center of this Rural Municipality.