Dharan being a model of public participation, people from far and wide visit it nowadays. The Municipality has put Government of Nepal (GON)'s policy of sustainable development through the participation of private sectors to practice. The policy is implemented through public participation in the construction of development infrastructures. The concept of more and more public participation in the mobilization of local resources is the basis of the sustainable, balanced, planned development of the city's education, health, tourism and trade. The public participation for the city's development includes both financial and physical labour.

Looking back, the history of public participation in the development works go well before 1980s. However, the active participation started only in 1998/99 fiscal year. At first the investment on the development projects were 25 and 40 per cent from the public and 75 and 60 per cent from the Municipality, depending on the amount of the cost, and afterwards the cost of project works were borne up to 50% by both parties.

Construction includes roads, drainage system, Ward Committee buildings, school buildings and public conveniences, too. One special aspect of the public participation is that the users themselves manage the maintenance and cleaning of the roads and drainage. The users themselves maintain and clean the roads daily/weekly, stop the bullock carts, stop the vehicles that carry loads more than the road standard, and control speed.

Private sector plays vital role in construction and management of childcare centers, schools and mother-child health clinics, too.

Further more, construction of the "Dharan Clock Tower", mainly funded by Dharan Hong Kong Forum, Macaw residing citizen form Dharan, local Dharan Citizen and Dharan Municipality is a one of best practice of Public Participation for whole Nepal.