(1) The basic structure of the Federal Democratic Republic of Nepal will be of three levels namely the union, state and local levels.
(2) The state power of Nepal shall be exercised by the union, state and local levels in accordance with this constitution and laws.
(3) At the time of commencement of this constitution, the provinces which are existing in Nepal shall be the provinces which have the districts mentioned in Schedule-4.
(4) There will be village councils, municipalities and district assemblies under the local level. The number of wards in the rural municipality and municipality will be according to the federal law.
(5) Special, protected or autonomous areas may be established for socio-cultural protection or economic development in accordance with the federal law.
(6) Union, state and local levels shall uphold Nepal's independence, sovereignty, geographical integrity, independence, national interest, comprehensive development, multi-party competitive democratic republican federal government system, human rights and fundamental rights, rule of law, separation of powers and checks and balances, plurality. And an egalitarian society based on equality, inclusive representation and protection of identity.