Panchayati Raj Department Government of Rajasthan is located in the state of Rajasthan. The Panchayat raj is a South Asian political system found mainly in the nations of India, Pakistan, Bangladesh and Nepal. It is the oldest system of local government in the Indian subcontinent. The word raj means rule and panchayat means assembly (ayat) of five (panch). Traditionally panchayats consisted of wise and respected elders chosen and accepted by the local community. However, there were varying forms of such assemblies. Traditionally, these assemblies settled disputes between individuals and between villages.