The Depot School was established in 1963 by the Brigade of Gurkha with aim on providing high school education to the children of servicemen and Ex-servicemen of the Brigade at a minimum cost. In the early seventies HMG Nepal had decided to close all private schools in the country and the were converted in to government run schools. The Brigade of Gurkhas requested for the permission from HMG Nepal to run the school as private boarding school and this request was granted in 1983. Government funding for the school was completely with drawn hence there after.
The construction of all the building was funded by British Gurkha service men's salary which popularly known as the "One day pay scheme". In 1984 the school received a huge financial donation from the Honorable Dr. Horace Kadoorie and the Kadoorie family. The School used this generous donation to refurnish many buildings to bring them a high standard. The school has been run by the British Gurkha Ex-Servicemen family Association since the Brigade of Gurkha left the Depot in 1989. The School is located on a large plot of land covering 13.53 Bigha (175.89 Ropani) in the north western part of the B.P Koirala institute of Health Science.
The excellent facilities include class rooms (Nursery to class Ten). The school is now renewed to its former glory and reputation with a 100% S.L.C pass rate since 1996. Depot School prides itself is not only being one of the best school in Dharan but also in Nepal as a whole.