The article describes the geographic setting of Tansen, Nepal. It includes the demographic status of Tansen in 1991. Tansen was recognized as a municipal town in 1961. This article is a research study on functional base analysis of Tansen municipality. The article concludes that the functional structure of Tansen indicates the three broad functional types, namely commerce, industry and institutions. It includes tables and chart illustrating the number and type of functional establishments in Tansen. (Rajeev Ranjan Singh 2006-10-08)