Groundwater is essential for economic development and ecological balance in Nepal's Rupandehi District, supporting agriculture and domestic water supply. This study addresses the gap in understanding groundwater interactions amid rapid urbanization in the Terai region of Nepal, emphasizing the underutilization of remote sensing and Geographic Information System (GIS) alongside advanced analytical frameworks like Multi-Criteria Decision Analysis (MCDA). Utilizing GIS and the Analytic Hierarchy Process (AHP), the research evaluates groundwater potential zones by analyzing key factors such as drainage density, slope, aspect, lineament density, geology, soil characteristics, rainfall, and land use/land cover, employing a Digital Elevation Model (DEM). The area consists of 46.41% low slopes and only 2.84% classified as very steep. Agricultural land comprises 74.91%, with clay loam as the primary soil type (62.05%). Groundwater potential mapping was conducted using the Groundwater Potential Index (GWPI) through weighted overlay analysis in ArcGIS, validated against 75 well data points from the Groundwater Resource Development Board (GWRDB). The study classifies 74.16% of the area as having high groundwater potential, with only 0.05% categorized as low potential. Validation results show 72% accuracy and a Kappa coefficient of 0.485. By offering a thorough and effective framework for assessing groundwater potential, it provides policymakers and stakeholders with essential insights to boost agricultural productivity, encourage sustainable water use, and protect against future resource depletion.