Shey Phoksundo rural municipality is located in the mid part of the Dolpa district. Existing VDCs such as Saldang, Bhijera and Phoksundo, were combined in Shey Phoksundo rural municipality. The Rural municipality has total area of 123.06 square kilo meter and is divided into 9 wards. Dolpo Buddha rural municipality lies in the east of Shey Phoksundo rural municipality. Similarly, this rural municipality is surrounded by Jagadulla rural municipality and Mugu district in the west, Nepal-China boarder in the north and Jgadulla and Tripura Sundari municipality in the south. Shey Phoksundo rural municipality has the total population of the municipality is 3099 consisting male population 1512 and female population of 1587 according to the population census of Nepal 2011. There are 730 households in Shey Phoksundo rural municipality.
The name of this rural municipality is based on historic & religious She-Phoksundo Cave & Lake lies in Rigmo. The head office of this rural municipality lies in Saldang. The historic & religious She-Phoksundo Lake, She-Cave etc lies in this rural municipality. The major reside in this rural municipality are Gurung, Rokaya, Budha, Bauji, Lama etc. this rural municipality is located in the at the height of 2,300 Mtr. to 7,425 Mtr. from sea level. The main source of income of this rural municipality is tourism, government/private job & foreign employment.
Mr. Tasi Tundup Gurung and Mr. Dhawa Sanduk Gurung are the chairman and vice chairman of the Shey Phoksundo rural municipality. The rural municipality office is situated in Saldang, Dolpa.