In Nepal, the Communist Party of Nepal (Maoist) [CPN (M)] started armed conflict since February 1996 to change the ?feudal? political system. It was ended in November 2006 by signing the Comprehensive Peace Agreement (CPA) between the government and the Maoist leader. A decade long armed conflict has brought enormous impacts on people, society and environment. However, this paper examine relationship between armed conflict and environment and its effects on environmental sanitation and health of internally displaced persons (IDP) staying in urban areas of Kathmandu valley, a capital city of the Nepal. The paper is part of the outcome of the ongoing research project related to internally displaced people of Nepal. The study analyses interaction patterns, coping strategies, available means of livelihoods, vulnerability and risks in new urban environment policy response of the state towards IDP in Nepal. The methods used in the study are focus group discussion, observation, in-depth interviews and triangulation. The analysis is made from the sociological perspective. This paper focus on the analyses of a) environmental causes of the armed conflict such as pressure on environmental resources, unequal and power-biased pattern of use and control of these resources, and weak environmental governance practices, and b) the impacts of armed insurgency on environmental sanitation and health issues of IDP of urban areas of Kathmandu valley. Based on the empirical evidences, the paper argues that poor environmental sanitation and health of IDP is directly linked with environmental stress and population factors, which have played significant roles in creating underlying conditions for the armed conflict. Hence, the degrading environmental situation of Kathmandu valley and poor health and sanitation conditions of IDP are directly connected and affecting each other. I conclude that the decade long armed conflict has created several negative impacts on health and sanitation, space and services such as education, drinking water and of IDPs staying in Kathmandu valley. Most of the negative environmental impacts are grounded in the governance problems, social and economic inequalities and environmental injustice and linked with the IDPs. Therefore, mitigating negative environmental impacts in urban areas and improving health and sanitation of IDP requires addressing underlying causes of environmental degradation. The CPA signed by the Government of Nepal (GoN) and the CPN (M) on 21 November 2006 has opened avenue for addressing negative environmental impacts in Nepal.
