The small town of Valapattanam, also known as Baliapattom, on the banks of the Valapattanam river, is located 7 km away from Kannur. Boat cruise is an exciting experience on the Valapatanam river which originates from the Western Ghats and joins the Arabian Sea, near the town. Valapattanam is a fishing harbour and the main source of irrigation in Kannur. The place is also famous for its wood-based industries and its trade. The transportation of timber in the traditional style i.e. long pieces of timber are tied together to float down the stream, is amazing to watch. Manufacture of Urus and Dhows is the main profession of the natives of Valapattanam. Teak, Iruli, Elavu, Karimurukku, sandalwood etc. are found in plenty in the forests of this district. The timber industry of Valapattanam succeeds because of this rich forest resources.Tea, coffee, rubber, tobacco, cashew nuts etc are the cash crops grown here. This is only place in Kerala where the cultivation of Pukayila (tobacco) is carried on successfully.

The Azhikkal port and Azhikkal Beach are located very near Valapattanam. Western India Plywoods Limited, the largest wood-based industry in the country and also one of the largest of its kind in South East Asia, is the major industrial concern here.