Introduction: Urban squatter settlements represent a growing socio-economic challenge in Nepal. Squatters, often residing on government land without legal ownership, rely on diverse survival strategies to sustain their livelihoods. Aadarshanagar, located in Butwal Sub-Metropolitan City, is one such informal settlement where residents face multiple vulnerabilities. Understanding their livelihood conditions and challenges is crucial for designing effective interventions.

Objectives: The study was guided by the following objectives: To assess the socio-economic conditions of squatters in Aadarshanagar. To examine the role of local organizations in improving their livelihoods. To identify the major factors contributing to livelihood vulnerabilities.

Methodology: A descriptive research design was adopted, using both primary and secondary data sources. Primary data were collected through questionnaires, field observations, focus group discussions, and field notes. Simple random sampling was employed to ensure representative selection of respondents. Secondary data were drawn from relevant reports, publications, and institutional documents.

Analysis: The analysis indicates that squatters in Aadarshanagar live under difficult conditions but exhibit a relatively moderate socio-economic status compared to typical squatter settlements. This improvement is attributed largely to the assistance provided by local organizations. Despite this, their livelihood security remains precarious, mainly due to political instability and frequent exposure to natural hazards, which stand as the major factors of vulnerability.

Conclusion: The study concludes that sustainable improvement in squatter livelihoods requires political stability and the establishment of effective, squatters-oriented organizations. Institutional support and policy interventions are critical to strengthening their resilience and ensuring long-term well-being. This research provides valuable insights for policymakers and development practitioners to enhance living conditions and promote sustainable livelihood strategies in Nepal’s rapidly urbanizing context.

chiranjivi devkota