Historic towns have cultural significance with multiple values: aesthetic, historic, scientific, social or spiritual for past, present or future generation. Today, traditional settlements are being affected and losing their character with various kinds of developments such as economic, social, political, legal and institutional structures, technology and culture. This all adds up in the process of urbanization. The traditional settlements which were along the trade route, and flourished as important centers, are now being under shadow in the context of new developments. In Kavre region, some of the examples of traditional towns that have suffered through such developments are Panauti, Shreekhndapur, Banepa and Nala. Kavre District lies in the eastern part of Kathmandu Valley. From ancient inscriptions, it is clear that in ancient times all the settlements of Kavrepalanchok district were under the Lichhavi Kings. History also shows that during Malla period every part of the district was under the kings of Bhaktapur and sometimes under Kantipur. During Malla period some of the settlements of Kavre district received the title "desa".
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