Gaunpalika or gaupalika (Nepali: गाउँपालिका, translit. gāunpālikā| translation: Rural municipality) is the newly formed lower administrative division in Nepal. The Ministry of Federal Affairs and Local Development (Nepal) dissolved the existing village development committees and announced the establishment of this new local body. There are currently 481 rural municipalities in Nepal out of 744 local units.
The main purpose of a gaunpalika is similar to that of a village development committee. Besides this, this division has the authority to collect various taxes like entertainment tax, business tax and residential tax at the local level.
The Village Development Committee (VDC) was dissolved on March 10, 2017. Previously, panchayat was dissolved and turned into VDC by the Constitution of Nepal 1990.
According to the English translation of the Constitution of Nepal, the term "gaunpalika" has been used as "village body". However, the Ministry of Federal Affairs and Local Development explained that the term "rural municipality" was coined after opinions from experts and diverse sources.
The chief is the head of a rural municipality. A total of 744 chiefs were selected by the government in 10 March 2017.
The rural municipalities will have an annual budget of at least Rs 10 million.