Rural area of Chandigarh comprises of 13 villages having the population of 93863, as per Census 2011. Chandigarh is a fast expanding and developing city within the radius of 8 KM. These villages have also attained peri-urban character due to their close vicinity to Chandigarh. As this law provided for a uni-tier Panchayat system, a new law was brought in for creating two higher tiers – Panchayat Samitis and Zila Parishads, which was entitled the Punjab Panchayat Samiti and Zila Parishad Act, 1961 and was subsequently extended to Union Territory, Chandigarh on its formation. At present, the Punjab Panchayati Raj Act, 1994 is applicable in U.T. Chandigarh with effect from 23.04.1994.
With the provision of civic amenities like safe drinking water supply, storm water drainage, sewerage system, electrification, street lighting, solar light, metalled link and circular roads, the villages of UT Chandigarh have attained the characteristic of towns and they are no longer rural in character. The agriculture and allied activities have almost come to an end in these villages.