Mohali, located to the West of Chandigarh, is almost a continuation of the Chandigarh city.
It is officially named after the eldest son of Guru Gobind Singh, Sahibzada Ajit Singh (SAS Nagar, or "House of Sahibzada Ajit Singh"). It along with Chandigarh and Panchkula form a part of the Chandigarh Tricity or Chandigarh Capital Region.
Mohali was conceived after the trifurcation of Punjab and its capital Chandigarh becoming a Union Territory in late 1966. Today, Mohali and Chandigarh are contiguous areas with only the boundary of Punjab and UT of Chandigarh dividing this area. The original plan of Mohali is in fact a mere extension of the road and design system of Chandigarh without any unique planning. The development earlier was only till Phase VII. The development of sectors and phases from Phase 8 onwards started in late 1980s, and the city got its own bus stand in Phase 8 in mid 1990s. In 2006, Mohali's population is near 200,000, approximately 1/5 of Chandigarh's. The region has been targeted by an increasing number of outsourcing IT companies, who look to capitalize on the rich investment opportunities the city offers.
Mohali comes under the jurisdiction of Punjab State while Punchkula is a part of Harayana. This urban area is now popularly known as the Tri-city.Now a days Mohali is a separate district of punjab.