Secunderabad until recently had its own municipality and city government. Secunderabad was the area in Hyderabad which was under the direct control of the British.
Secunderabad was founded as a British cantonment after the Hyderabad Nizam Asaf Jah II was defeated at the hands of the British East India Company and was forced to sign the Treaty of Subsidiary Alliance in the year 1798 AD. He had to sign the subsidiary alliance treaty in order to gain the support of the British troops parked in tents in the open areas of the maidan of the village Ulwul, north-east of Hussain Sagar, the lake that separates Secunderabad from its twin city Hyderabad. Later, in 1803, Nizam Sikandar Jah, the third Nizam of Hyderabad, renamed Ulwul as Secunderabad after himself. The city was formed in 1806, after the order was signed by the Nizam alloting the land north of Hussain Sagar to set up the British Cantonment. The twin cities are separated by the man-made Hussain Sagar lake, which was built during the reign of the Qutb Shahi dynasty in the 16th century. Unlike Hyderabad, the official language of Secunderabad was English. Secunderabad was exempted from customs duty on imported good thus making trade very profitable. Various new markets such as Regimental Bazaar and General Bazaar were created. After the Sepoy Mutiny of 1857, the construction of a seven metre high wall was started at Trimulgherry and completed in 1867. Secunderabad Railway Station one of the largest in India which is also the zonal headquarters of South Central Railway was established in 1874. The King Edward Memorial Hospital, now known as Gandhi Hospital was established in 1851. A Civil Jail (now a heritage building known as Old Jail complex near Monda Market) was also established. Originally constructed in 1860 as the country house of the British Resident at Hyderabad, the Residency House is now known as the Rashtrapati Nilayam, the official retreat of the President of India.