Set to function as the handbook on federalism in Nepal, this book outlines the basic framework for the federal governance system, as well as the structures and processes that are currently taking shape within it. The book also provides a brief overview of the political transition and adoption of the Constitution of Nepal (2015) and sheds light on the three-tier federal structure and institutions. The book also discusses on the inter-governmental relationship framework and aims to bridge the gap in the understanding of the evolving governance architecture of the federal republic and the way in which state institutions operate under the new constitution. The book can be used as a resource by the general public as well as government stakeholders, development agencies, academicians for policymaking, planning, decision making processes as well as for further research and deliberations to bring about a coherent understanding on the country’s governance system, the structure of Nepali state and its functionality at present and in the future. The book is published by Centre for Federalism Studies, Nepal Administrative Staff College (NASC) and The Asia Foundation.