The present name of Khammam is said to have been derived from the name of the temple 'Narsimhadri', later 'Stamba Sikhari' and then it was termed as 'Stambadhri' which has an ancient temple of Narasimha Swamy on its top.This temple is believed to have been existing since Treta Yuga. The vertical rock under the temple is known as 'KAMBA'. The name of the town Khammam seems to have been derived from the name of this hill of Kamba and the district is named as Khammam.
The town is located on the banks of a river called Munneru which is a tributary of the Krishna River. Khammam district has a lot of historical importance in Andhra Pradesh.
There is a festival held in Khammam remembering the old name "Stambhadri".It is held in Taruni hut showing the culture of Khammam people.
Khammam town which was the seat of Taluk Administration was part of the larger Warangal District, till 1st October, 1953. Five taluks of the Warangal district viz., Khammam, Madhira, Yellandu, Burgampadu and Paloncha (Now Kothagudem) were carved out and a new district KHAMMAM with Khammam as District Headquarters. In 1959 Bhadrachalam Revenue Division consisting Bhadrachalam and Nuguru Venkatapuram Taluks of East Godawari district, which were on the other side of the river Godawari were merged into Khammam on grounds of geographical contiguity and administrative viability.
In 1973 a new taluk with Sathupalli as headquarters was formed carving out from Madhira and Kothagudem taluks. In the year 1976 new taluks were formed viz., Tirumalayapalem, Sudimalla, Aswaraopeta
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