Laljhadi Rural Municipality is situated at mid-east part of Kanchanpur district, Sudur Paschim province. it was established in 2073 B.S. by combining then Baaise Bichawa, Dekhatbhuli and Shankarpur Village Development Committees. This Rural Municipality is divided into six wards. This local unit is surrounded by Punarbas and Krishnapur Municipalities at east, Shuklaphata Municipality and Shuklaphata National Park at west, Shuklaphata and Krishnapur Municipalities at north and Belauri and Punarbas Municipalities at south. This is named after Laljhadi jungle. This is 46 kilometer far from district headquarter Mahendranagar. It is plain area with hot weather.

As per the census 2011, 22,569 is the total population of Laljhadi Rural Municipality which include 3,640 households. Population of female is 11,483 and male is 11,086. Economically active population is 57%. Ward number four is most populated ward followed by ward number one and three. There are more than ten ethnic communities residing in this Rural Municipality, among them Tharu are majority constituting 77% followed by Chhetri and Brahmin. Literacy rate is 61.74%. Almost all people have access to road and electricity. It covers total area of 154.65 kilometer square. It covers plain land of terai suitable for agriculture. Paddy and wheat are major crops.

Mr. Madan Sen Badayek is Chairperson and Ms. Satya Devi Mahara is Vice-chairperson of Laljhadi Rural Municipality. Total number of elected local representatives is 32. Center of this local unit is located at ward number two Shankarpur.