It lies on a rich plateau 200 ft. above the river level, en route to the Haji Pir pass, and to the Uri town beyond.

However, the maharajas of Jammu and Kashmir, who became the suzerains of the Poonch jagir after 1846, exerted increasing control over the region towards the end of the period.

Raja Baldev Singh constructed a road from Poonch to the Haji Pir pass via Kahuta, along with a suspension bridge over the Betar Nala near the town.

It was burnt down by the Jammu and Kashmir State Forces stationed at Poonch during the Indo-Pakistani War of 1947, mistaking an Indian relief column sent via Uri to be an enemy attack.

Nevertheless, a portion of the column under the command of Pritam Singh reached Poonch and helped the town survive the siege although Kahuta itself ultimately fell under Pakistani control.