Chandwad fort was positioned to overlook the trade route from Khandesh to Nashik.

Between 1754 and 1756, Malharrao Holkar induced craftsman to settle in the town by gifting some land.

[2] On 10 April 1818, after the surrender of Ankai and Tankai forts, the British forces captured Chanwad fort under the detachment headed by Lieutenant Colonel McDowell.

In 1857, during the first war of independence (the rebellion), the 24th Maratha regiment initially took charge of the fort, but had to surrender it to British forces in 1859.

Railway depot at Manmad in 1861, the bulk of trade line traffic was diverted away from Chandwad.