The 40kms long Kallai river, originates from the Cherikkulathur in the Western Ghats at an altitude of 45 m and is linked to the Chaliyar River by a man-made canal on the south side of the Kallai village. This small village on the banks of the Kallayi river is a major center of Kerala's timber industry. Though the past glamour has been lost, the yard is said to be the second largest in the world. A steel bridge built by the British is still intact here.