Located near the city of Dharan in the Eastern Region of Nepal, the town and municipality of Itahari is developing so rapidly that it is expected to reach the outskirts of Dharan in the not too distant future. One of the reasons for the rapid expansion of Itahari is the fact that it lies on both the south-north Koshi Highway and west-east Mahendra highway, making it an important transportation junction for Eastern Nepal. The bus terminus at Itahari sees thousands of passengers arriving and departing each day. This effective transportation system allows visitors to reach the Eastern Region of Nepal with ease.
In keeping with the global trend toward conservation of natural resources, the town of Itahari has adopted the motto of being a "Clean, Green and Commercial City". The efforts to attain this goal are evident by the municipal offices which are located next to a scenic lake and set in landscaped gardens. Entrepreneurial skills are encouraged in the residents of Itahari which has resulted in the commercial value of the city increasing. People from surrounding towns and cities are known to travel to Itahari to shop.
As one of the three municipalities of the Sunsari district of Nepal’s Eastern Region, Itahari is located in the fertile Terai region and has the Sunsari, Budhi and Tengra rivers running through it. The lush vegetation of the region provides some ideal habitats for a variety of birds, as well as an assortment of animals such as tigers, elephants, foxes and monkeys.