The state of Himachal Pradesh is divided into 12 Districts and Mandi is one of the Distirct with it's Head Quarter at Mandi. Sarkaghat is one of the 5 Urban Local Bodies in Mandi District. The Sarkaghat town is located about 60 k.m. away from Distt. Head Quarter Mandi. Sarkaghat town is a main business centre of the Distt. Mandi and it covers most of the population of the District Mandi.

The Sarkaghat Urban Local Body came into existence during the year 1981. The Nagar Panchayat Sarkaghat has 7 wards. A new ward Dabrog also including in Nagar Panchayat Sarkaghat recently. The present population of this town is about 6000 and the floating population is about 1 Lacs per month.

This town is rapidly growing and is the main business centre for the Gram Panchayat falling in the radius of 25 Kms.

The Sarkaghat town has one Govt. P.G. College, one Govt. Hospital, Senior Secondary School, Mini Secretariat in which the various Govt. Department Office of Sub-Division level function.

There are various Government Institution like Sub-Division Office , Tehsil Head quarter, Sub-Divisional Police Office, Sub-Divisional Judicial Courts, I & P H Division Office, H.P.P.W.D Divisional Office, Electrical Division Office, Ayurvedic Hospital ,Vetnary Hospital, Excise & Taxation Office, H.R.T.C Division Office, Soil Conversation Office, C.D.P.O Office, BDO Office, Post Office, Tele Communication Centre, Banks (UCO bank, PNB, SBI, HP State Co-Op.Bank). About 30 Govt. and Private Educational / Technical Centres, Hotels, Dhabas & Shops etc.are situated in the town.

The project Regional Urban Management Institute(RUMI) is about 50 Kms from the Sarkaghat town. The proposed and upcomming Driving School in just at the boundary of the Nagar Panchayat Sarkaghat.

The town has the Sub-tropical climate and characterized by hot summer and cold winter. The temperature various between 10 degree C to 45 degree C with June as the hottest and January as the coldest months. Geologically the Sarkaghat town is located in seismic zone.

Thousand of tourists pilgrimsvisit Sarkaghat while going to Nabahi Devi, Awah Devi, Shiv Mandir Sarkaghat, Jawalamukhi, Kamlahiya Baba, Palampur and Dharamsala.