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Neelakantha Municipality lies in Dhading district, a single district in Nepal which ranges from Himalaya in North and Mahabharat range in south. Initially, four then village development committees: Neelakantha, Sankosh, Muralibhanjyang and Sunaulabazar were merged together to form this municipality as per the decision of Nepal government on May 8, 2014.  Later  on,  it  was  restructured  in  the  year  2017  adding  three  more  village  development  committees:  Jyamrung,  Khalte and Dhuwakot to form the present municipality

The name 'Neelakantha' is carried from the then village development committee Neelakantha which is the combination of  two  words:  Neela  (Blue  in  English)  and  Kantha  (Throat  in  English).  According  to  Hindu  mythology,  Lord  Shiva  (Mahadev) drank up all the poison to save the world that  was  produced  during  the  sea  churning  process  and  got  his  throat  blue.  The  name  'Neelakantha'  is,  so, named after Lord Shiva.

The   municipality   is   90   kilometer   west   from   Kathmandu  and  it  is  16  km  from  Malekhu,  a  point  in    Prithvihighway.    The    municipality    boarders    Nuwakot   district   in   the   east;   Jwalamukhi   and   Siddhalekh rural municipality in the west; Netrawati and  Tripurasundari  rural  municipality  in  the  north  and  Galchhi  and  Siddhalekh  rural  municipality  in  the south. It occupies 10% of total area of Dhading district.    Among  199.85  square  kilometer  of  total  area of the municipality, forest occupies 99.31 square kilometer which is nearly 50% of total area. The land form is more sloped and terraced. Neelakantha Municipality is situated between latitudes of 27°50'45.442" to 27°58'1.27" north and between longitudes of 84°58'49.98" to 84°56'41.37" east.