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Situated in the confluence of two rivers – Punyamati and Roshikhola, Panauti lies 10 km south of Dhulikhel. This ancient Newari triangular city still retains its old medieval charm. There are clusters of multi-storied pagodas and religious monuments, a surrounding old bazaar and the Newar’s cultural traditions almost in their original form. Besides the monuments of religious and historical importance, Panauti is famous for classic 20th century Rana-style Newar houses.