The occupation of the Garwhal kingdom by the Gurkhas had gone unopposed from 1803 to 1814 until a series of encroachments by the Gurkhas on British territory led to the Anglo-Nepalese War in 1814.

At the termination of the campaign, on April 21, 1815, the British establish their rule over the eastern half of the Garhwal region, lying east of Alaknanda and the Mandakini river, and later known as British Garhwal an the Dun of Dehradun, together with Kumaon, which is merged with British India as a result of the Treaty of Sugauli.

The former Kumaon Kingdom is joined with the eastern half of the Garhwal region and is governed as a chief-commissionership, also known as the Kumaon Province, on the non-regulation system.

Meanwhile, the western part of the erstwhile Garhwal Kingdom is restored to Sudarshan Shah.

As Srinagar is now part of the British Garhwal, a new capital is established at Tehri, giving the new polity name of Tehri state (popularly known as Teri Garhwal).

The Terai lands prove difficult for the British to govern, and some of them are returned to the kingdom later in 1816 and the annual payments accordingly abolished.

The border issue between the two states is not yet settled: the boundary between Nepal and Oudh will not be finally adjusted until 1830; and that between Nepal and the British territories is to remain as a matter of discussion between the two Governments for several years later.