Pothukal, Chungathara, Nilambur, Mampad, Edavanna, Kavanoor, Perakamanna, Areekode, Kizhuparamba, Elamaram, Cheekkode, Vazhakkad, Vazhayur, Cheruvadi, Edavannappara, Mavoor, Peruvayal, Perumanna, Feroke and Beypore are some of the towns/villages situated along the banks of the Chaliyar.

It flows mainly through the erstwhile region of Eranad (present-day Malappuram district), and finally empties into the Arabian Sea at Beypore port, opposite to Chaliyam harbour.

Six major streams Chaliyarpuzha, Punnapuzha, Kanjirapuzha, Karimpuzha, Iruvahnipuzha and Thottumukkampuzha constitute the Chaliyar River drainage system.

Rafts made of logs were taken downstream during the monsoon season to Kallayi, where these were sawn to size in the timber mills dotting the banks of the river.

[citation needed] In addition to these rivers some creeks also join Chaliyar from Neelithode, Poonkudi, Vadasseri, Edavanna, Kunduthodu and Mampad.

The banks of the Chaliyar River offer a variety of tourist attractions, rich in natural beauty, historical significance, and cultural heritage.

Environmental agitations in 1998 caused the closure of the factory and the entire village went bankrupt because of the sudden development and eleven people even committed suicide because of not being able to face unexpected poverty.