It originates in the Paharpani Village of Uttarakhand state, and flows south past Kathgodam, Haldwani, Kichha and Shahi, finally joining the Ramganga River about 15 km (9.3 mi) northwest of Bareilly in Uttar Pradesh, Ramganga in turn is a tributary of the river Ganges.

[3] Over the years, due erosion and deforestation the Gaula catchment has become prone to landslides and the springs in it and overall rainfall have declined leading to reduction in its flow.

[4][5] The Gaula riverbed after it hits the plain near Haldwani has also been facing erosion to excessive quarrying.

When despite Supreme Court's directive which effectively banned quarrying while only allowing silt deposit removal,[6] has led to public protests in the regions and a bandh (mass strike) in Haldwani in December 2009 by activists, alleging nexus between stone crushing and mining industry and the administration.

[7] The steady erosion of the Gola river forest corridor threatens the survival of tigers and elephants in the Terai region,.