Khiali and Shahpur were originally two separate villages about two miles away from Gujranwala district courts. Both towns were about one acre away from the single lane Sheikhupura road. Khiali was a very old village. The Sansi clan is Hindu by origin and according to historians were the people living in ancient Gujranwala. There were few Sansi villages, which are all now part of greater Gujranwala. As the majority of the Sansis fled to India, a number of families from India migrated here.
It is mostly an industrial area, thus forced to pollute the environment and as it is comparatively more developed, the people take less precautionary measures to prevent most of the pollution. This leads to Land Constraint.