Better known by its Tibetan name, Khasa, Zhangmu is a small settlement clinging to a hillside 10 km from the Friendship Bridge that crosses the Bhotekoshi river. Since the closure of the China/India border from Gangtok, Zhangmu has become the major trading point between Tibet and Nepal. The climate is quite different from the hinterland. The hills around Zhangmu are heavily wooded with many waterfalls in summer and impressive ice formations in winter. It has a bank, a post office, a government store, and is presently undergoing a construction boom to meet the demands of trade and tourism.

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