Shivalaya rural municipality is located in the south-west part of the Jajarkot district. Existing VDCs such as Sima, Thalaraikar, and Jungathapachaur, were combined in Shivalaya rural municipality. The Rural municipality has total area of 134.25 square Kilometers and is divided into 9 wards. Chhedagad municipality lies in the east of Shivalaya rural municipality. Similarly, this rural municipality is surrounded by Dailekh district in the west, Chedagad municipality in the north and Surkhet district in the south. Shivalaya rural municipality has the total population of the municipality is 15269 consisting male population 7543 and female population of 7726 as of Census of Nepal 2011. There are 2556 households in Shivalaya rural municipality.

The story behind the name of this rural municipality is, in ancient age, lord Shiva had come to dwell and informed all residents through their dream to come at that place and make a Shiva temple. People built a temple at that place. So as the name of this rural municipality is Shivalaya rural municipality. People produce the crops like Corn, Millet, Wheat, Barley-Flower, etc. which require less irrigation. Valuable herbals can be found. This rural municipality is the place of about extinct Red Panda. Hindu, Buddhist and Cristian are the major ethnic group of this rural municipality. Chhetri (42%), Brahamin, Shahi, Newar, Damai, Kami, Gurung, Sarki, Thakuri are major community inhabitant in this rural municipality. People’s major source of income is agriculture, fruits cultivation, and livestock farming. Dashain, Tihar, Budhha Purnima, Loahasar, SrawanSakranti, Janai Purnima etc. are the major festivals people do celebrate in this rural municipality. Sigaru dance, Thadi song, Lahare song, Jyaure song, and Deuda song are famous of this rural municipality.

Mr. Narendra Kumar Shahi and Mrs. Kumari Thapa are the chairman and vice chairman of the Shivalaya rural municipality. The rural municipality office is situated in Sima, Jajarkot.