(1) According to this Act, land will be classified into land use areas as follows:-
(a) Agricultural sector,
(b) Residential area,
(c) Commercial sector,
(d) Industrial area,
(e) Mining and Mineral Sector,
(f) Ban region,
(g) rivers, streams, lakes, border areas,
(h) Area of ​​public use,
(i) Areas of cultural and archaeological importance, (h) Other areas designated by the Government of Nepal as required.
(2) Notwithstanding anything written in sub-section (1), the land classified in other areas except the area mentioned in clause (a) of the same sub-section shall not be hindered from being used as an agricultural area by informing the local land use council until it is used in such area.
(3) The areas classified as per sub-section (1) may be classified into sub-areas as specified.
(4) If any province or local level deems it necessary to classify it as any land use area other than the area classified under sub-section (1), it shall send in writing to the Federal Land Use Council to include such area in the land use area classification.
(5) In accordance with sub-section (4), if the Federal Land Use Council deems it necessary to further classify the land use area, it may give consent to the relevant province or local level to classify the land use area.
(6) The respective local land use councils shall classify the land within their area into land use areas in accordance with the land use area classification basis, criteria and procedures prepared by the Ministry as per this Act. (7) While classifying the areas according to sub-section (6), the local land use council shall classify the areas which are in operation or are designated to be operated under any federal or state level plan accordingly.
(8) Place for public information notice of classification of land use area by local land use councilIt should be published and broadcast through local newspapers and electronic media.
(9) In the area already classified by the Local Land Use Council, if the Government of Nepal or the Provincial Government has to carry out any plan different from the prescribed classification, the existing land use shall be changed according to Section 8.
(10) The basis, criteria and area for classifying the land use area shall be as prescribed.