Being the `queen of the hills', Shimla is fast becoming a favourite destination of domestic and overseas tourists. Shimla, once an obscure village settlement at a height of more than 7,200 feet, has a special place in Indian city planning. Prior to independence, Shimla was the summer capital of India and following independence it became the capital of Punjab. Presently, it is the state capital of Himachal Pradesh, following the re-organization of states in 1961 and 1966. Shimla, mainly a service town, has 142,161 people (2001 Census), excluding its large floating population. The population of Shimla constitutes more than 87% of the total urban population in the district and 20% in the state.

Population growth along with the geographical spread of the city, particularly after 1966, has resulted in a large number of problems with respect to governance and management.