Tilathi Koiladi Rural Municipality is situated at south-east part of Saptari district, province number two. This Rural Municipality was established 2073 B.S. by combining then Tilathi, Louniya, Babhanagamakatti, Sakarpura, Koiladi and Madhyapura Village Development Committees. This local unit is surrounded by Hamuman Nagar Kankalni Rural Municipality and Koshi River from east, Chhinnamasta Rural Municipality from west, Mahadeva Rural Municipality and Rajbiraj and Hanuman Nagar Kankalini Municipalities from north and Indian border from south. This was named two villages Tilathi and Koiladi. This area lies at the bank of Koshi River. This unit has been categorized into eight wards. It includes plain land with hot weather.

As per the household survey 2075, total population of this Rural Municipality is 38,365 covering 5,697 households. Population of male is 19,040 and female is 18,425. Ward number five is most populated ward. There are about 27 different ethnic groups with 36 different Surnames holding people residing under this local unit, out of them Dhanak Mandal are major ethnic community followed by Rajput, Madhesi Brahmin and Muslim. This local unit covers total area of 32.92 kilometer square. Most of the land is covered by forest and farming area. Maithali and Hindi are major languages spoken followed by Tharu, Urdu and Nepali. Fishery and agriculture are major occupation under this area. Paddy, maize, wheat, sunflower and mustard are major crops that could be cultivated.

Mr. Shatish Kumar Shingh is Chairperson and Ms. Suchita Kumari Yadav is Vice-chairperson of this Rural Municipality. Number of local representatives of this local unit is 44 and number of employees working under this Rural Municipality is 13. Tilathi village is center of this local unit.