The district of Mandi Bahauddin is subdivided into three tehsils
2. Mandi Bahauddin
In 1506 C.E. a Gondal Jat Chief Bahauddin established a settlement namely Pindi Bahauddin, after his migration from Pindi Shah Jahanian to this area. The population of this town grew in the early 20th century near the ancient village [Chak No. 51] - the town was named Mandi Bahauddin (or Market Bahauddin) after establishment of a grain market in the area. The district forms central portion of the Chaj Doab lying between Jhelum and Chenab rivers. It lies between 300 – 8/ to 320 - 40/ north latitudes and 730 – 36/ to 370- 37/ east longitudes. During British rule in 1916 Pindi Bahauddin Railway station was established. It was a time when the British were establishing and introducing modern and essential public use equipments in their best interest. Above mentioned Railway System was introduced and laid down to defend their Empire from the North. So it was called North-Western Railway (NWR). This Region was called "Gondal Bar" some of its land was barren and uncultivated, British government constructed new canals and a big irrigation project was completed. Main route of the canal Lower Jhelum was dug. Water was released in 1902 in its main route.
Chak Bandi was made by Sir Malcum Heley and approximately 51 Chaks were settled and notified. In these 51 Chaks , the land was awarded to the people who worked for British Empire. Chak 51 became the centre of this newly established town. The map of this Chak was made by John Alam. A famous grain market was set up in this Chak. After this the Chak No. 51 was called Mandi-Bahauddin. In 1920 this name was notified. In 1924 Pindi-Bahauddin Railway station was notified the above mentioned name. In 1937 when Mandi-Bahauddin was town, it was given the status of a town committee. In 1941 it was given the status of a Municipal Committee. In the Master plan of reconstructing this town, in 1923 all the streets and roads were laid straight and wide. In 1946 nine gates and the wall surrounding this town was completed due to roits.
After the partition when the Sikhs and the Hindus have migrated to India, bulk of Muslim population migrated and settled here. In 1960 this city was given the status of Sub-Division. In 1963, the Rasul Barrage and Rasul-Qadirabad link canal project under Indus Basin irrigation project started. The Project was managed by WAPDA, and a large colony for government employees and foreign contractors was constructed a few kilometres from Mandi Bahauddin. This projected was completed in 1968 by Engineer Riazur Rahman Shariff as the Project Director. This project brought lime light to Mandi Bahauddin and helped the city grow commercially.
In 1993, Mian Manzoor Ahmed Wattoo, The Chief Minister of Punjab, announced and notified this city as a District H.Q. of a new district of Mandi Bahauddin
In the Western side of Mandi Bahauddin at the place of Khiwa, the famous and historical war "Battle of the Hydaspes River" between Raja Porus and Alexander the Great,was fought. The Battle of Hydaspes River was fought Alexander the Great and the Raja Porus of India in 326 BCE, on the Hydaspes River (now River Jhelum) in Pakistan. The kingdom of Raja Porus was situated in that part of ancient India which has become modern day Pakistan. The battle was the last major war fought by Alexander.
At the first day of this war, Harry Roy the son of Raja Porus was killed at 11 o-clock. At the same day, the horse (Bucephalus) of Alexander the Great, was dead. After the death of his son, Raja Porus (initially stationed at Nazampur) came with Elephants and fought against Alexander the great. This war was on the Southern Bank of the River Jhelum. As a result of this battle, Alexander founded two cities, Nicaea (Victory) at the site of modern day Mong and Bucephala at the site (possibly) of Phalia in Pakistan. Bucephalus was the name of the horse that Alexander rode on, having died either during battle or right afterwards of weariness and old age. Wazir Abad Cuttlery industry has its own pride to sharpen and prepare the swords of this great Invader.
At a few distance from here, second Sikh war in 1849 in the region of Lord Guff, the British and the Khalsa Sikh Army fought at the place of Chillianwala.
A grave yard at Rakh Minar near Chillianwala has its own Ancient Memorandum where many British Army soldiers and officers have been buried.
Tehsil headquarters towns of Phalia and Malikwal are at the distance of 22.5 and 28.5 kilometres from Mandi Bahauddin, respectively. The shape of the district is like a parallelogram. It is bounded on the north by river Jhelum (which separates it from Jehlam district); on the west by Sargodha district; on the south by river Chenab (which separates it from the Gujranwala and Hafizabad districts); and on the east by Gujrat district. Total area of the district is 2,673 square kilometres. The district comprises three tehsils, namely, Mandi Bahauddin, Phalia and Malikwal.