Parts of Teiči Nature Reserve are located in the Municipality.

After protests from locals, parts of whom wanted to either preserve the status quo or preferred joining Madona Municipality, the municipal council submitted a case to the Constitutional Court of Latvia in June 2020.

[citation needed] On 28 May 2021 the court declared the planned merge is unconstitutional.

[4] However, on May 31 the Saeima voted to proceed with the merge, which prompted the involvement of the President of Latvia Egils Levits to avoid triggering a constitutional crisis.

[6] Due to this, the 2021 Latvian local elections for the new municipalities were also held in Varakļāni.