The area has always been an important water catchment area, supplying the Kathmandu Valley with several hundred thousands cubic liter of water daily. In 1976, the area was established as a protected watershed and wildlife reserve. In 2002, it was gazetted as Shivapuri National Park, initially covering 144 km2 (56 sq mi). It was extended by the Nagarjun Forest Reserve covering 15 km2 (5.8 sq mi) in 2009.
The park includes some historical and religious sites, and a popular hiking route for local people and tourists.
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