Khatyad rural municipality is situated in the southern part of the Mugu district. Existing Village Development Committees such as Seri, Shreekot, Khamale, Gamtha, Hwanlu, Sukadhik and Kotdada, were combined in Khatyad rural municipality. The Rural municipality has total area of 281.12 square kilo meters and is divided into 11 wards. Chhayanath Rara municipality lies in the east of Khatyad rural municipality. Similarly, this rural municipality is surrounded by Bajura district in the west, Soru rural municipality in the north and Jumla and Kalikot district in the south. Khatyad rural municipality has the total population of the municipality is 17116 consisting male population 8629 and female population of 8487 as of Census of Nepal 2011. There are 2821 households in Khatyad rural municipality.
This rural municipality has total area of 281.12 Sq. Km. with 11 wards and 57 toles. Brahmin, Chhetri, Thakuri, Dalit, Giri, Ban, Khatri, Dholi, Oda, Batalu, Chadara etc caste and ethnic groups are residing in this rural municipality and they celebrate festivals like Dashain, Tihar, Magheshakranti, Ramnawami, Baishakepurnima, Janaipurnima, Teej, Holi etc. Most of the household individuals are engaged in agriculture as well as livestock & mushroom farming. The main crops are Paddy, Wheat, Corn, Mas, Rahar, Aalas, Mustard, and Potato etc.
Mr. Ubjan Bahadur Sahi and Mrs. Jayananda Rawal are the chairman and vice chairman of the Khatyad rural municipality. The rural municipality office is situated in Khatyad, Mugu.