Panini rural municipality is located in the eastern part of the Arghakhachi district. Existing VDCs such as Panena, Khidim, Pokharathok, Patauti, Maidan, Dhatibang, Adguri, Chidika and paali, were combined in Panini rural municipality. The Rural municipality has total area of 151.41 square Kilometers and is divided into 8 wards. Palpa district lies in the east of Panini rural municipality. Similarly, this rural municipality is surrounded by Sandhikharka and Shitganga municipality in the west, Chhatradev rural municipality and Gulmi district in the north and Palpa district and Rupandehi district in the south. Panini rural municipality has the total population of the municipality is 26424 consisting male population 11144 and female population of 15280 as of Census of Nepal 2011. There are 6152 households in Panini rural municipality.
As per the ancient tale, the sage Panena came and worship lord Mahadev here in this rural municipality, and name is based upon his name. The tourist area like Shrinagar, Swargadwari, Reshungaetc have good access from this rural municipality. In these days people also engaged in harvesting many cash crops like vegetables, mushroom, livestock, etc. Festivals like Dashain, Tihar, Magheshakranti, Ramnawami, Chaitedashain, Baishakha Purnima, Teej, Janaipurnima etc are celebrated and castes like Brahaman, Chhetri, Newar, Magar, Kaami, Damai, Sarki etc reside in this rural municipality. The major occupational source is agriculture, livestock, cash crops, foreign employment etc.
Mr. Achut Gautam and Mrs. Laxmi Gautam are the chairman and vice chairman of the Panini rural municipality. The rural municipality office is situated in Durgaphat, arghakhachi.