Nik Shahr was formerly a part of the township of Chabahar, and in the recent years has become a township. The said area has special facets from the natural and geographical point of view, and is famous for its citrus orchards. To its north and northeast is Iran Shahr, to the south stands Chabahar and in its western sector are the provinces of Hormozgan and Kerman.
The most important historical relic of this newly founded township is the ancient castle of Chehel Dokhtar.