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Bijaypur (present-day Dharan, Sunsari district) was the capital town of lowland Limbuwan kingdom of Morang. It was ruled by Limbu King (Rai) Buddhi Karna Raya Khebang. King Buddhikarna Khebang was the descendant of the ruler King Muray Hang Khebang of Phedap Kingdom . Since 1584 AD till 1774 AD, Dharan-Bijaypur was the capital city of Morang Kingdom of Limbuwan. It was also effective capital of the entire Limbuwan region or Ten Limbu Kingdoms which was also known as Pallo Kirat . Thus, in August 1774, the Gorkha King Prithivi Narayan Shah's representatives Abhiman Singh Basnet, Parath Bhandari, Kirti Singh Khawas and Bali Baniya met the ministers of Morang state and agreed to come to good terms with the Gorkha Kingdom and accept the Gorkhali king as Maharaja and that in return the kingdom of Gorkha would retain the right of self-government of Limbu rulers in their kingdoms.
City, which is connected with the historical importance of Bijaypur started its development since 1985 BS. Then Prime minister Chandra Shumsher Jung Bahadur Rana established Chandra nagar (now purano bazaar) and primeminister Juddha Shumsher Jung Bahadur Rana established Juddha nagar (now naya bazaar). City abstracted its name after "Dharan" (nepali word) a rectangular hollow dug under the ground and a low platform upon it for sawing logs with a big saw; one person on the platform and other below it. And, after the establishment of Dharan city, logs used to be widely split uphere in "Dharan".It took its present shape when Bijaypur village panchayat and Ghopa village panchayat were merged into Dharan municipality in 2035 BS.
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