MettaDana operates from Kyaswa Monastery, founded in the 14^th century and located in a remote northern area of the Sagaing Hills. The monastery is built on several levels cut into limestone hills rising from the banks of the Ayeyarwadi River. The highest levels overlook the river east to Mandalay and the Shan Plateau beyond. In addition to practicing and transmitting the Buddha's teachings, monasteries in Burma have a long tradition of helping surrounding communities with some of the basic needs of life. The lay community both supports and is supported by the monastery in an interdependent and mutually beneficial relationship founded on metta and dana. Kyaswa Monastery is firmly within this noble tradition. Nearby lies the ancient village of Wachet, which in the 14th century was designated by the king as the food preparation center for the growing numbers of monks and nuns seeking solitude and inspiration in the Sagaing Hills. In fact, the village name derives from the Burmese words for "food preparation." Now the village has 500 houses and 3000 people, and the monastery is actively involved in improving health and educational conditions. The current Kyaswa abbot is Sayadaw U Lakkhana, a renowned meditation teacher and founder of the Wachet Jivitadana Sangha Hospital adjacent to the monastery.

The MettaDana Project was founded in January 1995 by Steven Smith, in consultation with Sayadaw U Lakkhana. MettaDana depends on charitable donations. Donations are channeled through Kyaswa Monastery to health, educational and related activities, or are donated directly to other monasteries and nunneries. No government agencies are involved and virtually all operating expenses of MettaDana are met by its volunteer staff.