Autonomous movements in southern Nepal have added a new layer of conflict to a volatile political situation. The Maoist armed uprising and pro-democracy movement that abolished the monarchy and initiated a republic unleashed sub-national aspirations for autonomy in the southern borderland region of Nepal. In this article, Madhesi autonomous sentiment in Nepal's southern borderland region is explored within the context of ethnofederalist concepts of the role of core ethnic identities and state stability as articulated by Hale and others. This inquiry is undertaken against the backdrop of Nepal's Constituent Assembly's (CA) failed efforts to draft a new constitution. Several key disagreements between the main political parties continue to be contentious and could undermine efforts to elect a new CA and restart efforts to draft a new constitution. Among the areas of contention are proposals to redraw internal political boundaries along ethnic lines and proposals to integrate proportional representation into Nepal's democratic system. Both of these proposals have significant implications for the power balance between the Madhesi of the Terai and the centre in Kathmandu. The article also explores post conflict concessions by the new democratic government and the role that they have played in both diffusing and exacerbating conflict in the Terai. The Terai borderland's role in Nepal's geopolitical position relative to India and China is also considered.

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