Khagaul is a satellite town of Patna and is located at a distance of 7 km from Patna. Khagaul town is spread over 3.68 sq km and is divided into 27 wards. The municipality was established in 1908 and was elevated to a Nagar Parishad in 2002. Khagaul is located at a distance of 6 km from the River Ganga with a slope towards the Patna Canal that borders the town to the east. Khagaul has witnessed unplanned growth in recent years on account of its proximity to Patna. While the town is not located on any National Highway, the NH 98 and 30 are nearby. The nearest airport is Patna located at a distance of 3 km. A colony of the Indian Railways abuts the town. A Rail Neer factory that manufactures mineral water for the railways is located here. The proposed All India Institute of Medical Sciences (AIIMS) is being developed near the town in Phulwarisharif.

A good proportion of the town’s population is engaged in trade and business. With the fast development of the town several commercial establishments have emerged. Khagaul’s importance has been steadily increasing on account of its being a satellite town of Patna on western side and location on the Delhi- Howrah rail line. The economic conditions of the population are similar to those of any average Indian medium town.

The competitive advantage of Khagaul lies in its proximity to Patna. Additionally the town has good rail and road connectivity. The proposed campus of the All India Institute of Medical Science in Phulawarisharif is another factor that will impact the town’s future growth.