Balun Cantonment, as at present constituted, comprises 1008.50 Acres, and may be roughly divided into 7 sections or areas – Banikhet, Mankote, Ticca, Balun, Surkhi Gala, kathyadu and Rhoulla.

Before dealing with the origin of Balun Cantonment, it is necessary to show briefly how, and at what period, the Civil Station, (Dalhousie) which is contiguous to the Cantonment along its Southern boundary, was founded.

In 1854-55, a large tract of land was acquired from the Chamba State by the Court of Directors of the Honorable East India Company, for the formation of a Sanitarium.

This area comprised the whole of what is now known as Dalhousie Civil Station or Municipality, plus about half the area of the present Cantonment, and was vested at first in the local Committee of Dalhousie, and subsequently in the Municipality.

In 1865, a committee was appointed to select a site for Cantonment in the vicinity of the Civil Station, and in accordance with the proposals of this Committee 400 acres were acquired from the Chamba State. This area was included in the following village; Uparla Balun, Chikla Balun, Niam, Banjala, Kathiaru, Uparla Rohla, Chikila Rohla, Dramaun and Suthan Behi. Rs.12431/- were paid to the Zemindar tenants as compensation for this land, and all their rights in the soil were, therefore, held to be fully extinguished.

In addition to the 400 acres mentioned above, some 600 acres were at the same time transferred from the Dalhousie Estate in the following tikas; Tikkar, Suthan Behi, Ghari da Nal, Kasruri da Got Banikhet and Mankote, and the zemidar tenants of these tikas, which were sparsely inhabited, received Rs.3500 as compensation.

Balun Cantonment was constituted in 1867, and its boundaries sanctioned under letter No.420 dated 26th June 1867, from the Secretary, Military Department, Government of India.

As Balun was the largest tika on the Area taken up, the Cantonment was constituted under the name of Balun. Some years later, when the boundaries of the Cantonment were Gazettee, Notification No.69, dated 5th (x) April 1883, it was misnamed Dalhousie Cantonment.The name was subsequently verified and changed into BALUN Cantonment.

As compensation for his right of ownership over Balun and Bakloh Cantonments a sum of Rs.5000/- was reduced from the tribute annually payable by the Raja of Chamba 4/10 of this sum were considered to be for Balun and 6/10 for Bakloh.

Subsequently doubts were entertained as to whether the Zemindar tenants of the land transferred from Dalhousie had ever received the Rs.3500/- compensation, and in 1881 Rs.4117-8-0 were paid on this account the Superintendent of Chamba State.