Damak was changed to a municipality from a VDC (Village Development Committee) in 1981 AD. The Damak municipality consists of 10 wards, with previous 19 wards rearranged and some wards merged. Damak also includes the large Himalayan tea estate (हिमालय गूडरिक) where the Ex-Royal Family has also invested. The municipality covers an area of 7,513 hectares and is at an average of 100 meters above sea level. Lakhanpur is to the east, Urlabari, Rajghat and Madhumalla is in the west and Chulachuli (Ilam) and Kohabhara VDC in the north and the south, respectively.

According to the census of 2011, Damak had 7,178 households containing about 36,000 people. The total area is 7,513 hectares out of which 1406.7 hectares is covered by residential area whereas 5,586.30 hectares is used for agriculture. The market area consists of 400.00 hectares, 215 hectares as forest plant area and 265.00 hectares is used in other purposes.

It is the biggest city in Mechi zone. Pashuhat, located in Damak-7, is known as the biggest cattle market in the Nepal.

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