Established as a district on July 1, 1982, Khushab enjoys a unique topography in Punjab. Lying along the right bank of River Jhelum, it covers an area of 6,511sqkm and comprises serene and picturesque mountains, as well as fertile plains. Khushab city is a centuries-old settlement. Local researchers like Imtiaz Hussain Imtiaz claim the city was named by Sultan Mahmood Ghaznavi, deriving its nomenclature from two Persian words — Khush meaning sweet and Aab meaning water. A Sher Shah Suri era mosque, Sharfuddin Masjid, built with mud and clay bricks still exists in the walled city having 11 gates.
Unlike other districts, at least in Punjab, the city has not been made the headquarters of the district from which it derives its name. Rather Jauharabad, an adjacent town located over 7.5km away from Khushab, serves the purpose. The foundation of Jauharabad was laid in 1951 and developed under a master plan to serve as the new federal capital of Pakistan until military dictator Gen Ayub Khan replaced it with Islamabad. Because of its planned design, open spaces and wide avenues, it began serving as the district headquarters when Khushab was carved out of Sargodha as a new district.